Donald Trump is expected to announce on Thursday that the US will initiate a trade deal with the UK, according to sources familiar with the matter.
The specifics of this trade agreement remain unclear, and the UK has not commented on whether the deal was finalized. Analysts are unsure if a conclusive contract has been established or if it will merely lay the groundwork for further discussions.
Trump hinted at the announcement from the Oval Office at 10 a.m. (3 p.m. BST), but he did not reveal the country involved or the terms of the agreement.
“A large press conference tomorrow morning at 10 a.m. from the Oval Office, featuring representatives from a major and respected country!” Trump posted on True Society.
The US has been in discussions with the UK for several weeks, aiming for a quick agreement to address lower tariffs on US cars and agricultural products, as well as reducing taxes on US tech companies.
British Prime Minister Kiel Starmer has stated that he will not compromise on food production standards for increased trade in US agricultural goods, especially as the UK seeks to finalize another agreement with the EU, aligning UK standards with European ones.
A group of senior UK trade negotiators arrived in Washington on Wednesday as discussions between the two nations picked up speed.
Officials from the UK Business and Trade Division were preparing to sign the agreement ahead of the UK-EU summit scheduled for May 19th.
UK officials are aiming for targeted tariff reductions to secure a deal before formally starting negotiations with the EU on another agreement. A recent draft given to the US proposes decreasing tariffs on UK steel, aluminum, and car exports, and includes concessions from major US tech firms regarding the digital services tax.
Timothy C. Brightville, an international trade lawyer, mentioned to The New York Times that the announcement is probably just a preliminary agreement to start discussions, outlining the topics for upcoming months.
The Trump administration had implemented significant tariffs on various trading partners during what he termed “Liberation Day” on April 2, but partly rolled back these measures after a sharp decline in US stocks and bond markets.
The UK has not faced mutual tariffs as the US enjoys a trade surplus, selling more to the UK than it imports. However, like all nations, the UK is impacted by global tariffs of 10% and 25% tariffs on steel, aluminum, and automobiles.
A recent tariff announcement by President Trump concerning the film industry has reportedly caused a significant setback in trade negotiations, according to UK governmental sources.
