Donald Trump is set to announce a major trade deal with the UK, with the US President teasing the news on his Truth Social platform.
Trump confirmed that he would hold a “big news conference” at 10am local time (3pm BST) from the Oval Office, where he is expected to reveal the details of a “major trade deal” with representatives of a country he described as “big and highly respected.” While the name of the country has not been confirmed, the UK is widely believed to be the partner involved in the deal.
Ongoing Talks Between the US and UK
According to reports, final details of the agreement are still being worked out. It remains unclear whether the announcement will be for a complete deal or merely a framework for further discussions.
A spokesperson for Downing Street has remained tight-lipped, stating that trade talks with the US have been continuing at pace, and that the Prime Minister will provide an update later today.
Tariff Reduction Likely to be the Focus
The deal is expected to focus on reducing tariffs between the two nations, rather than a traditional trade agreement. The UK is particularly keen to reduce tariffs on steel and cars, while the US wants to see reductions on pharmaceuticals and technology products.
Currently, British goods entering the US face a 10% tariff, while steel, aluminium, and vehicle parts are taxed at a higher rate of 25%.
The Impact of Trump’s Tariffs
This announcement would mark the first deal since Trump’s controversial tariff announcement on April 2, which imposed sweeping tariffs on 60 countries, including the UK.
However, just hours after introducing those tariffs, the President announced a 90-day pause, allowing time for negotiations.
Chancellor Rachel Reeves has confirmed that the UK Government has been working “flat out” to secure an agreement that would alleviate the impact of these tariffs.
Earlier this week, the UK also struck a trade deal with India, which includes significant tariff reductions on Scotch whisky and car exports to India, as part of the Government’s broader trade strategy.
Further Updates Expected
More details of the deal with the US are expected to be revealed during Trump’s news conference this afternoon. The announcement will be closely watched by both markets and industries across the Atlantic.
