The US and UK are set to announce a trade agreement on Thursday that’s expected to reduce tariffs on goods exported by the two economies.
President Donald Trump posted on Wednesday night that a “major trade deal” was imminent.
“Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!” the President posted on his Truth Social account.
The New York Times first reported that the deal would be with the UK.
A Downing Street spokeswoman told Business Insider that talks between the two countries had been “continuing at pace” and the Prime Minister, Keir Starmer, would provide an update later on Thursday.
“The United States is an indispensable ally for both our economic and national security,” the spokeswoman said.
The UK government has been seeking an agreement to lower tariffs since Trump’s “Liberation Day” tariffs imposed a 10% levy on UK goods and higher rates of 25% on steel, aluminium, and cars.
The details of the deal were not clear, but lessening tariffs on cars — the UK’s top export to the US, worth almost $12 billion —has been a key priority for Starmer.
In return, the UK may reduce its 2% digital sales tax, which was introduced in 2020 and applies to the revenues of tech giants such as Amazon and Meta.
Many global leaders have been seeking to negotiate with the Trump administration to lessen the impact of the sweeping tariffs announced on April 2.
Thursday’s agreement would make the UK the first country to formally ease economic tensions with Trump.
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Trump’s declaration that Thursday’s trade deal would be the “first of many” suggests that the President may be ready to soften his approach to global trade relations.
Last week, the president said he had “potential” trade deals lined up with India, South Korea, and Japan.
Trump’s approval rating has taken a hit, and recent polling shows that Americans have also soured on his handling of the economy.
However, uncertainty still pervades Trump’s economic maneuvers. During an Oval Office meeting with new Canadian Prime Minister Mark Carney this week, Trump said he didn’t need to make trade agreements.
“We don’t have to sign deals, they have to sign deals with us. They want a piece of our market — we don’t want a piece of their market,” he said.
Other countries such as China have retaliated rather than negotiate. The US now has up to 245% in tariffs on imports from China, a manufacturing hub. Beijing has retaliated with 125% tariffs on US goods.
For the UK, a deal with the US would be the second significant win after the country secured a landmark trade deal with India earlier this week.
Negotiating international trade deals has become a key priority for the UK since its 2016 vote to leave the European Union made it necessary to strike new agreements.
The White House did not immediately respond to a request for comment.
