Hoping for a Tariff Truce: Britain and U.S. Eye Economic Partnership

Britain remains hopeful that planned U.S. tariffs will be reversed if the two nations agree on a new economic partnership. The aim is to align more closely with Washington, especially in technology. Talks continue with a focus on avoiding retaliations and possibly softening the digital services tax.

Britain holds on to hope that the U.S. will reverse tariffs if they can forge a new economic partnership, said Business Minister Jonathan Reynolds. Britain is trying to align more with Washington, especially in tech and AI, to avoid Trump's global tariff plan.

While Reynolds is optimistic about a framework agreement, he acknowledges U.S. willingness is crucial. Prime Minister Keir Starmer has described talks as 'well advanced'. Unlike the EU, Britain isn't looking to escalate but rather is focusing on a calm approach to keep British businesses steady.

The British government considers a softer digital services tax approach to avoid discrimination claims from the U.S. Trump argues this tax is unfair against U.S. firms. Despite Britain's light-touch AI regulation aiming to attract investment, sensitive topics like food standards remain off the table in discussions, signaling cautious optimism for rapid progression.

(With inputs from agencies.)