Trump set to announce US-UK trade deal

By Fidan Sayyadli
May 8, 2025 09:03 Updated 46d ago
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Reuters
Reuters

U.S. President Donald Trump is expected to announce a major trade deal with the UK on Thursday, marking Britain’s second deal in a week and potentially lowering tariffs on steel and autos, according to sources cited by the New York Times.

U.S. President Donald Trump is expected to announce a trade agreement between the United States and the United Kingdom on Thursday, according to a New York Times report citing sources familiar with the matter. Trump posted on Truth Social that he would host a press conference at 10 a.m. EDT in the Oval Office to reveal a "major trade deal with representatives of a big, and highly respected, country", though he did not provide specific details, only noting that it would be the "first of many".

While the White House has not commented on the report, the news led to a rise in the British pound. This would be Britain’s second major trade agreement in a week, following a recent deal with India. A UK official said progress had been made with the U.S., likely involving reduced tariffs on steel and automobiles. Meanwhile, Britain is in talks with U.S. officials regarding the recently announced 100% tariff on foreign-produced films.

The timing of this announcement is notable, as U.S. and Chinese officials are also set to meet in Switzerland on Saturday for trade talks aimed at easing tensions between the world’s two largest economies. Trump's tariffs and aggressive trade stance have caused volatility in global markets and supply chains, prompting warnings from economists and institutions like the International Monetary Fund, which recently lowered growth forecasts due to rising trade tensions.

Trade analysts caution that the U.S.-UK agreement could put the UK in a difficult position, given its ties with both the EU and China. British manufacturers, often integrated into broader European supply chains, could face unintended consequences if retaliatory tariffs are imposed.

Since imposing a 10% tariff on most countries in early April- with exceptions and suspensions- Trump’s administration has been actively negotiating with various nations. Notably, the UK was spared from the additional tariffs due to its trade surplus with the U.S. Trump has also placed steep tariffs on goods from Canada, Mexico, China, and several other nations. He mentioned that his team would review possible trade agreements over the coming two weeks, and hinted at ongoing negotiations with India, South Korea, and Japan.

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