The United States and Britain were reportedly set to announce a trade agreement on Thursday that could have implications for President Donald Trump’s tariff assault, though the scope of the deal may be limited.
According to The New York Times and Politico, the agreement would be with the UK, citing multiple sources familiar with the matter. The Wall Street Journal described it as a “framework” rather than a finalized deal.
“It would be the first such trade agreement since Trump imposed sweeping tariffs on U.S. trading partners on what he called ‘Liberation Day’ on April 2.”
President Trump implemented a 10 percent tariff on imports, including those from Britain, but temporarily delayed higher duties for many countries to allow room for negotiation. On Wednesday, Trump teased on social media: “A major trade deal will be announced with a big and highly respected country.”
He is expected to reveal details at a 10:00 a.m. (1400 GMT) news conference in the Oval Office, which he described as the “first of many” trade agreements.
In London, Downing Street stated that Prime Minister Keir Starmer would provide an update on the ongoing trade talks with the U.S.
“Talks on a deal between our countries have been continuing at pace, and the prime minister will update later today,” a spokeswoman said.
Starmer, who, like Trump, assumed office last year, had advocated for a trade agreement prior to the implementation of the tariff blitz.
“Reaching a post-Brexit agreement with the United States has been the Holy Grail for Britain since it exited the European Union at the start of the decade.”
With an EU-UK summit scheduled for May 19, London is keen to demonstrate international momentum. The new agreement follows Britain’s recent free–trade deal with India, its largest such deal since Brexit.
The EU remains the UK’s largest overall trading partner, but the United States is the UK’s largest individual country partner.
Details and Impact
Trump has claimed that multiple countries are eager to strike deals with the U.S. Reports suggest Washington may ease tariffs on British products in exchange for relief from the UK’s digital services tax on U.S. tech giants.
While the UK did not retaliate against the tariffs, the terms of the current deal remain unclear.
Jonathan Portes, economics professor at King’s College London, commented: “Any deal with the U.S. is likely to be damage limitation rather than an economic boost… Exporters will probably still be facing higher tariffs overall than they were last year.”
Jim Reid, analyst at Deutsche Bank, added: “Given that full trade deals take years to negotiate, this will likely be a framework… Whether the 10-percent baseline tariff stays will provide an important template for negotiations with other countries.”
The Bank of England is expected to cut interest rates as Trump’s tariffs may dampen global economic growth.
U.S.-UK Relations
Starmer met with Trump in Washington in February, where both sides expressed optimism. Trump called Starmer a “tough negotiator” and expressed hope for a “great” deal.
During the visit, Starmer extended Trump an invitation to meet King Charles III for a second state visit, which the UK hopes will bolster diplomatic and trade ties.
Trump, whose mother was Scottish, has longstanding affection for Britain, including ownership of a golf course in Scotland.
