The United States and the United Kingdom are expected to unveil a new trade agreement on Thursday, potentially reshaping President Donald Trump’s tariff strategy. While details remain limited, sources cited by The New York Times, Politico, and The Wall Street Journal describe the agreement as a “framework” deal rather than a full accord.
This would mark the first significant trade development since Trump imposed sweeping 10% tariffs on global imports—including those from the UK—on what he dubbed “Liberation Day,” April 2. Temporary exemptions were granted to allow time for negotiations.
Trump teased the announcement in a social media post, calling it a “major trade deal” with a “highly respected country,” and is scheduled to formally present the agreement during a 10:00 am press conference in the White House.
In London, Prime Minister Keir Starmer is also expected to address the media on Thursday regarding the trade talks. Downing Street confirmed discussions have been progressing rapidly. Starmer, who came to power last year like Trump, had long sought a deal with Washington, especially in the post-Brexit landscape.
Striking a US deal has been a top priority for the UK, particularly ahead of a key EU-UK summit on May 19. A US-UK accord could complicate ongoing EU negotiations with Washington. Earlier this week, Britain finalized a trade deal with India—its most significant since leaving the EU.
Although the EU remains Britain’s largest trading bloc, the US is its single biggest country trade partner.
Potential Deal Terms and Impact
While the deal could ease some tariffs, many analysts remain cautious. There’s speculation the US may lower tariffs on certain UK goods in exchange for changes to Britain’s digital services tax, which affects American tech companies.
Economist Jonathan Portes noted the deal may serve more as “damage control” than a significant economic boost, with UK exporters likely facing higher tariffs than before.
Deutsche Bank’s Jim Reid emphasized the framework nature of the agreement, suggesting full negotiations will take years. Meanwhile, the Bank of England is expected to cut interest rates Thursday amid concerns over the global economic impact of Trump’s tariffs.
Personal and Diplomatic Ties
Starmer met Trump in Washington earlier this year to discuss trade and presented an invitation from King Charles III for a second state visit—an effort to bolster UK-US relations. Trump, whose mother was Scottish, has long expressed admiration for the UK and its royal family.
AFP
