Rachel Reeves warns UK won't accept US trade deal if red lines are crossed

The UK is ready to walk away empty handed from make-or-break trade talks with the US rather than accept a bad deal, Rachel Reeves has said.

In an interview with The Mirror the Chancellor voiced her optimism an agreement can be reached to tackle the misery caused by Donald Trump's tariffs. But she rejected the suggestion that the US President is acting like a bully.

The Chancellor also refused to commit to giving MPs a vote on a trade deal if one is reached - something many are calling for. Ms Reeves will hold crunch talks with her US counterpart Scott Bessant at the IMF spring meetings in Washington DC next week.

Speaking at the British Steel plant in Scunthorpe, the Chancellor said the UK will have a number of red lines - notably farming standards and online safety - that it is not prepared to compromise. Asked if the UK was prepared to walk away if these are crossed, Ms Reeves said: "Absolutely. We're not going to do something that's not in our national interest."

White House sources this week suggested an agreement could be reached within three weeks. Ms Reeves sounded a note of caution, stating: "Well, we're not going to rush into something that isn't the right thing for Britain. But we are intensely negotiating with our American counterparts to get a better deal for British industry and British jobs, and that is our focus at the moment."

Since Mr Trump slapped levies on foreign goods, he has been accused of trying to bully other nations to get his way. But Ms Reeves rejected that characterisation. "No, I wouldn't put it like that at all, actually," she said.

"We are in negotiations with the US and we're working hard to secure a deal. Our economies are incredibly closely intertwined in terms of security, the US is our most important ally. We are friends. We have a close friendship, a close relationship. You saw when Keir Starmer went over to the White House, the way he was received by President Trump.

"We look forward to welcoming President Trump to the UK later this year on a state visit. The only US president ever afforded a second, full state visit. And that shows the strength of our relationship and the true nature of that relationship. But, look, the world has changed. We can see that all around us. We're not a government that's just going to roll over and absorb that change. We're going to try and shape that, change and do deals with countries around the world."

Asked what she expects to bring home from Washington, Ms Reeves said: "It's an opportunity for me, for this government, to make the case for free and fair trade between countries. No one benefits from a trade war.

"I'm absolutely clear about that. I'm here at British Steel today. British steel, aluminium and cars are now impacted by 25% tariffs. The retaliation of other countries is just escalating the situation. We're focused on getting a deal in our national interest. We're not going to sign any old deal, but to secure British jobs and British industry, that's the message I'll be taking to Washington."

Asked whether tariffs will be the number one issue, Ms Reeves said: "Yes of course." She pointed to the 25% tariffs on steel and cars and stated: "We want to make sure that we have that free and open trade.

"And what I will say when I'm talking to my US counterparts next week is while there are global imbalances in trade, there are some countries that run massive trade surpluses with America and other countries around the world. Britain is not one of those countries. We have balanced trade, with the US, a million Brits work for American firms, a million Americans work for British firms. We welcomed into the UK just a week or so ago investment by Universal Studios for the first theme park in all of Europe.

"So our countries are very closely connected. We don't want to see unnecessary barriers that make that trade harder."

There has been speculation that US negotiators could push for food products that do not meet UK safety standards - such as chlorinated chicken and chemical-treated beef - to be sold in Britain. And Vice President JD Vance may push for online restrictions on hate speech and online safety to be torn up to boost US tech giants, it is reported.

Ms Reeves said: "We've been really clear about farming standards. That's not up for negotiation in any deal with the US. And we've just passed landmark legislation on online safety. Children's safety is also not up for negotiation in these talks."

The Government also faces demands to allow MPs to vote on the terms of a trade deal. Ms Reeves refused to commit to that, stating: "I'm sure that there will be a way for MPs to pass judgement. There always is in the end on anything that affects the UK's interest. But if we are to do a deal, it will be in our national interest. That is our priority. Working people in Britain have been let down for too long."