President Donald Trump is expected to announce an expected trade deal with Britain on Thursday, marking a potential breakthrough in transatlantic relations as his global trade tensions exacerbated his global trade tensions.
The president mocked the news in a post about the Truth Society and promised a “major trade deal” at a press conference scheduled for 10 a.m. in the Oval Office. Although Trump did not name the country, the New York Times reported that the deal would reach a deal with the UK, a statement that British officials have responded.
“The first of many people!!!” Trump wrote.
According to UK government sources, the agreement is expected to include lower tariff quotas for UK steel and automobiles, and mutual benefits for lower tariffs on U.S. automobiles and agricultural supplies.
The announcement comes at a critical political moment for Prime Minister Keir Starmer, who hopes to unveil a post-Brexit reset plan at the EU summit on May 19 to sign a trade deal with the United States.
The Financial Times reported that the draft agreement would secure quotas for UK automobile and steel exports and reduce the benchmark tariffs imposed by the United States earlier this year. In return, the UK could reduce its digital service tax and make modest concessions on agricultural and American-made vehicles.
Since the launch of the “Liberation Day” tariffs on April 2, Trump has introduced or revised the import tax, ranging from 10% to 145%, affecting almost all imported product categories. Although Britain is exempt from additional tariffs – mainly because it imports from the United States to more exports, many people are worried that it will still fall into a firefight.
Trump temporarily suspended his worst tariffs for 90 days, including levies on trading partners such as Japan, South Korea and the EU. But Britain is competing to ensure custom agreements before the end of the period of grace.
“We have reached potential trade agreements with India, South Korea and Japan,” Trump said earlier this week. “We are reviewing them now.”
Despite the progress, Prime Minister Starmer ruled out major U.S. requirements, including lower food safety standards and changes in online safety legislation, which some U.S. lawmakers see as a restriction on freedom of speech.
This rejection could mean that the UK is still subject to a 10% benchmark tariff (rather than getting full exemptions), but ensuring export-friendly quotas can provide substantial relief for UK manufacturers.
Trump's announcement comes ahead of the senior announcement of the U.S.-China trade talks on Saturday, with investors hoping the two superpowers can begin to resolve their escalating economic dispute.
Trump has hinted about tariff exemptions for child care products, such as car seats and diapers, as pressure from soaring parents has increased.
“I want it to be nice and simple,” Trump said. “I don't want so many exemptions that no one knows what we're doing…but I'll look at it.”
As tariffs make consumers difficult to hit businesses with tired global supply chains, UK deals could provide rare moments of clarity and relief in the turbulent chapters in global trade.
Although details of the transaction are still being retained, financial markets are expected to respond quickly once a formal announcement is made. Investors are watching closely the signals on how Washington plans to handle other pending trade talks and whether the deal could set a precedent for other countries looking to drive Trump’s growing protectionist agenda.
Currently, the UK appears ready to be number one in the trade deal, providing both sides with a strategic victory and potentially driving a tortured British economy, hoping to reaffirm its global trade certificate after Brexit.
