The United States and Britain are reportedly set to unveil a trade agreement on Thursday—marking a significant step in President Donald Trump’s ongoing tariff campaign. However, sources suggest the deal’s scope may be limited.
According to The New York Times and Politico, the agreement involves the UK and is based on information from multiple sources familiar with the plans. The Wall Street Journal described the expected announcement as a “framework” deal rather than a finalised agreement.
This would be the first trade agreement since Trump imposed sweeping tariffs on global imports—what he dubbed “Liberation Day”—on April 2. The president introduced 10% tariffs on imports from around the world, including Britain, but temporarily paused steeper duties on several countries to allow room for negotiation.
In a social media post on Wednesday, Trump hinted at a “major trade deal” with a “big, and highly respected country,” which many now believe to be the UK.
Yet, it remains unclear whether the agreement has been finalised or if it will be a preliminary framework that leads to further negotiations. Trump is expected to announce the deal at a 10:00 am (1400 GMT) press conference from the Oval Office, calling it the “first of many.”
Meanwhile, in London, a Downing Street spokeswoman confirmed that Prime Minister Keir Starmer would deliver an update on the ongoing trade discussions later Thursday.
“Talks on a deal between our countries have been continuing at pace,” she noted.
Starmer, who assumed office last year like Trump, had advocated for a US-UK trade agreement prior to the president’s tariff imposition on Britain and other countries.
Securing a post-Brexit trade deal with the United States has been a key objective for the UK since its exit from the European Union. London is especially eager to advance negotiations ahead of a May 19 EU-UK summit intended to reset relations with the 27-member bloc.
A US-UK trade accord could complicate the EU’s own efforts to finalise a trade deal with Washington.
Earlier this week, Britain also finalised a free trade agreement with India—the country’s largest such deal since leaving the EU—following renewed talks prompted by US tariff threats. Though the EU remains Britain’s largest trading bloc, the US is the UK’s single biggest national trading partner.
Deal Details Still Unclear
Trump has repeatedly claimed that multiple countries are eager to sign trade deals with the US. Some reports suggest Washington may reduce tariffs on British goods in return for changes to the UK’s digital services tax, which targets major US tech firms.
Notably, the UK has not responded with retaliatory tariffs to Trump’s 10% duties or the steeper 25% tariffs targeting steel, aluminium, and automotive imports.
“Any deal with the US is likely to be damage control rather than a significant economic win,” said Jonathan Portes, economics professor at King’s College London. “It might reduce the burden of Trump’s tariffs, but exporters will still likely face higher tariffs than they did a year ago.”
Jim Reid of Deutsche Bank added, “Since full trade deals take years to finalise, this is probably a framework. Whether the 10% baseline tariff remains will shape future deals with other nations.”
The Bank of England is widely expected to lower its key interest rate by a quarter point Thursday, with Trump’s tariff policies posing risks to global economic growth.
A Longstanding Affinity for Britain
Prime Minister Starmer visited Washington in February to discuss trade and tariffs, leaving optimistic about reaching an agreement. During the visit, Trump praised Starmer as a strong negotiator and hinted at a “great” future deal.
Starmer also extended an invitation to Trump for a second state visit to meet King Charles III—an event London hopes will strengthen transatlantic relations.
Trump has expressed admiration for the British royal family and has personal ties to the UK. His mother was born in Scotland, where he owns a golf course.
AFP
