- Thursday, May 08, 2025
Trump posted on Truth Social that he would hold a news conference about a “major trade deal with representatives of a big, and highly respected, country”
By: India Weekly
AFTER United States president Donald Trump imposed sweeping tariffs on trading partners on April 2, Britain is expected to be the first country to enter into a trade agreement with the US.
The two countries will be announcing a deal to lower tariffs on some goods on Thursday (8).
The US slapped 10 per cent tariffs on imports from around the world, including Britain, but he temporarily froze higher duties on dozens of nations to give space for negotiations.
Governments from around the world have been scrambling to strike deals with Washington before the new deadline passes.
Trump posted on Truth Social that he would hold an Oval Office news conference on Thursday about a “major trade deal with representatives of a big, and highly respected, country.”
The New York Times and Politico reported that the agreement would be with the UK, citing multiple people familiar with the plans, while the Wall Street Journal said it would be a “framework” of a deal.
A British government spokesperson said prime minister Keir Starmer would give an update on US-UK trade talks later on Thursday.
“The United States is an indispensable ally for both our economic and national security,” a Downing Street spokesperson said.
“Talks on a deal between our countries have been continuing at pace and the prime minister will update later today.”
A British official had said on Tuesday (6) that the two sides were working to agree lower tariff quotas – a tranche of exports subject to lower duties – on steel and autos, two sectors that were hit by 25 per cent US levies.
In return, Britain is likely to agree to lower its own tariffs on US cars and cut a digital sales tax that affects US tech groups.
It has refused to lower its food standards in order to give US producers greater market access.
The status of a 10 per cent “baseline” tariff imposed by Trump on most countries was unclear.
Despite the potentially narrow nature of any deal, it will be politically significant for both countries.
Investors have been looking to see whether Trump can de-escalate his trade war after the launch of global tariffs risked reigniting inflation and slowing economic growth.
Britain’s trade deals
For Britain, the government is trying to reduce the worst of the damage from Trump’s tariffs without damaging its efforts to reset its trade relationship with the European Union.
London is keen to get some kind of accord with Washington, ahead of a EU-UK summit on May 19 due to reset ties with the 27-nation bloc.
Britain this week struck a free-trade agreement with India, its biggest such deal since leaving the EU, after negotiations relaunched in February following US tariff threats.
Trump’s trade war has shaken up financial markets and raised fears of a recession, with central bankers and business executives wrestling with often chaotic policymaking that is hitting world supply chains and a whole host of industries.
The International Monetary Fund last month slashed its growth forecasts for the United States, China and most countries, citing the impact of US tariffs and warning that rising trade tensions would further slow growth.
US and Chinese officials are also preparing to hold talks in Switzerland on Saturday, which could mark the first step in resolving a potentially damaging trade war between the world’s top two economies.
Trump’s top officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed the broad 10 per cent tariff, along with higher “reciprocal” tariff rates for many trading partners, though those rates were later suspended for 90 days.
Washington is close to agreeing on trade deals with India and Israel, according to reports.
The administration is also continuing talks with several other countries, including Japan, South Korea, and Vietnam.
Britain was not among the countries hit with additional tariffs, because it imports more from the US than it exports. (Agencies)
