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Donald Trump is anticipated to announce a trade agreement with the UK on Thursday, marking the UK as the first country to finalize a deal with the US since the recent imposition of extensive tariffs by the White House.
UK officials expect this agreement to have a limited focus, concentrating on the car and steel sectors, which were significantly affected by Trump’s trade policies. UK exports of cars and steel to the US currently face 25 percent tariffs.
The US President indicated on his Truth Social platform that a significant trade deal announcement with a “big, and highly respected, country” was forthcoming.
Sources aware of the ongoing discussions on both sides of the Atlantic suggested that the announcement would involve a trade agreement with the UK, potentially serving as a substantial political advantage for Prime Minister Sir Keir Starmer.
However, British officials acknowledge that the deal will not reach the level of a comprehensive post-Brexit free trade agreement that the previous Conservative government aimed for.
According to reports, Washington and London are nearing an agreement that would include lower-tariff quotas for British car and steel exports.
UK negotiators have also attempted to persuade Trump to reduce his 10 percent global “baseline tariff” on UK imports, though this outcome seems unlikely.
This announcement from Trump is expected to commence a series of further trade discussions with the UK, which is also pursuing a “tech deal” to enhance cooperation in AI and other sectors.
Britain is anticipated to lower duties on US imports as part of the agreement, potentially reducing its 10 percent tariff on car imports and levies on meat and shellfish products. Discussions have also touched on the possibility of the UK reducing its digital services tax impacting US tech firms.
A spokesperson for Starmer stated that the US is an essential ally for both economic and national security reasons. Talks between the two countries have been progressing rapidly, with an update expected later in the day.
Starmer, who is participating in VE Day events in the UK, will not be traveling to Washington for the announcement, according to his allies.
The anticipated UK-US agreement is one of 17 that Trump aims to sign with major trading partners as the White House seeks to reverse the global tariffs announced on April 2.
The US President is under pressure to secure early deals to assure investors of his commitment to de-escalation after his April 2 announcement led to market turmoil.
Starmer also faces pressure to negotiate a deal with Washington following warnings from the car and steel industries about the “devastating” effects of the tariffs.
Vincent Clerc, CEO of AP Møller-Maersk, expressed that a UK-US trade deal would signify positive progress if it indicates a reduction in tensions.
Additionally, Trump administration officials continue negotiations with other countries including Japan, Vietnam, India, and the EU.
US Treasury Secretary Scott Bessent is set to travel to Switzerland for discussions with Chinese officials amid concerns about the impact of US-China tensions on global trade.
The White House has not provided comments on the matter.
