United States President Donald Trump is expected to announce the framework of a trade deal between the US and the United Kingdom on Thursday, according to people familiar with the plan.On Wednesday, Trump said he was preparing to announce “a major trade deal with representatives of a big and highly respected country”. In a post on Truth Social, he promised it would be the “first of many”.
Investors have been waiting for Trump to ease his global trade war amid fears that prolonged uncertainty over tariffs could inflict serious damage to the world’s biggest economies.
An agreement with the UK would mark Trump’s first trade deal since he imposed tariffs on dozens of countries on April 2, a move he called “liberation day”. Separately, Trump has introduced bespoke tariffs on certain US imports, including cars and steel.
Trump has long accused other countries of exploiting the US on trade, casting his tariffs as necessary to bring jobs back to the US. He also wants to use tariffs to finance future tax cuts.
US President Donald Trump holds a letter from Britain’s King Charles as he meets with British Prime Minister Keir Starmer in the Oval Office at the White House in Washington, DC, US, on February 27, 2025 [File: Kevin Lamarque/Reuters]
What could be in a US-UK trade agreement?
At the moment, most imports from the UK to the US face a blanket 10 percent tariff. The UK, like other countries, has also been hit with 25 percent tariffs on steel and aluminium exports to the US, as well as a 25 percent tariff on cars and car parts. Advertisement
The broad outline of a proposed deal has been clear for some time – significant reductions in US tariffs on steel and cars, with an expectation that Trump’s 10 percent general tariff will remain in place.
The UK would then be expected to reduce its own 2 percent digit …
