Trump Set to Announce US-UK Trade Deal Following Tariff Discussions

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According to sources privy to the information, Donald Trump plans to disclose a trade pact with the UK on Thursday. This restricted agreement could still indicate the trajectory of the U.S. president’s international trade conflict.

On Wednesday evening, Trump hinted at the announcement through a social media post, indicating he would conduct an Oval Office press briefing to talk about "A SIGNIFICANT TRADE AGREEMENT WITH ENVOYS FROM A LARGE, WELL-REGARDED NATION." Although specifics were not readily available, American and British authorities had been negotiating this week over proposals aimed at decreasing import duties on vehicles and steel—among various taxes recently instituted by President Trump against both partners and competitors.

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In a speech in London commemorating the 80th anniversary of the conclusion of World War Two, Prime Minister Keir Starmer announced that he would share more information regarding discussions with the U.S. later that day. Meanwhile, a British official hinted that Trump’s statement will likely revolve around the pact made with Britain.

"Let there be no doubt, I will consistently act in what is best for our nation's interests regarding workers, businesses, and families to ensure their safety and prosperity," Starmer stated, referring to the US as "essential" for Britain’s economic and national security.

The anticipation that an agreement would benefit the UK’s economy boosted both stocks and the pound. The sterling strengthened compared to the euro and performed better than all G10 currencies except the US dollar, with the FTSE increasing by 0.3%. At the start of trading, gilts remained relatively stable, performing marginally better than their counterparts, as market participants looked forward to the Bank of England’s interest rate announcement scheduled for later that Thursday.

The U.S. president has come under political pressure to seek a way out of his proposal to increase American tariffs to their highest point in 100 years, as polls Indicate that Americans are becoming disenchanted with his management of the economy. Trump indicated that the agreement he will discuss will be just one of several initiatives aimed at dismantling obstacles to U.S. exports and stabilizing market unrest caused by the extensive reach of his tariff policies.

This statement probably indicates merely the initiation of talks with an outline for upcoming discussions over the next few months," stated Tim Brightbill, a trade lawyer from Wiley Rein LLP. "It’s probable that topics such as tariff levels, nontariff obstacles, and electronic commerce will also be part of the agenda—each presenting complex challenges.

Big Caveats

Any accord would include substantial reservations. Extensive trade deals usually require years of negotiations, and discussions with multiple countries often focus primarily on high-level accords regarding pledges and objectives. This approach might postpone many specifics generally covered in thorough trade agreements until future talks.

Discussions with the UK have centered around several sectors including technology and artificial intelligence. The Labour government led by Keir Starmer aims to lessen the impact of U.S. tariffs—especially those at 25% on British automobiles and steel products. As the Trump administration investigates the pharmaceutical sector, Britain is striving to prevent potential tariffs on medications—a key export to the United States.

Although the scope of an agreement might be restricted, it could provide a significant uplift for Starmer. His administration previously declared intentions toward a more extensive trade deal. deal with India On Wednesday. Starmer has attempted to sustain amicable and cordial ties with Trump, engaging in frequent telephone conversations and pledging a subsequent state visit to the UK — partly with the aim of obtaining reduced tariffs compared to those levied on other comparable nations.

This strategy yielded inconsistent outcomes. Although the UK received the minimum tariff rates, at 10% for most products, it didn’t end up more prosperous compared to European Union nations after President Trump briefly reduced their rates. Recently, the U.S. president suggested imposing tariffs on several items from the UK. film industry — a major UK export The extension of tariffs to areas beyond just goods poses a significant threat to the British economy, considering its heavy reliance on the service industry.

The White House did not promptly reply to inquiries regarding the nation implicated or the extent of any possible agreement. Similarly, the UK embassy in Washington has yet to respond to requests for commentary.

The White House published its public schedule for Thursday late Wednesday evening following Trump’s post. It briefly states "THE PRESIDENT will make a Trade Announcement." According to initial reports from The New York Times, this announcement was expected to involve the UK.

Officials under the Trump administration are currently engaged in multiple concurrent talks with various nations. This follows President Trump’s decision to temporarily halt broad-ranging tariffs imposed on over 50 economies experiencing significant trade imbalances with the U.S., which were originally declared during his "Liberation Day" tariff initiative on April 2nd. Additionally, these taxes included a worldwide rate set at 10%, affecting almost every one of America's trading allies. The White House has further introduced targeted duties such as those on steel and automotive products, alongside threats of additional levies across an array of sectors ranging from pharmaceuticals to timber to imported films.

Trump has provided little insight into what would constitute an acceptable trade agreement; however, his staff members suggest that the preliminary statements will probably act as foundations for further discussions in the future.

The UK declared a significant new initiative trade deal on Tuesday with India, marking the biggest deal the UK has struck since leaving the European Union. The country aims to strengthen its economic relationships with various nations amidst the repercussions of US tariffs imposed under President Trump. Economists, including key figures at the Bank of England, have cautioned that an extensive trade war could negatively impact the UK, despite potentially securing reduced tariffs from the administration in Washington. This vulnerability stems primarily from the openness of Britain’s economy.

Several countries have held advanced-level negotiations, including Japan, India, and Israel. Last month, Trump startled Japanese delegates by taking part directly in the discussions himself, whereas Vice President JD Vance went to India for talks covering various topics such as trade.

Although any statement may lift market sentiment, investors will keenly observe how far Trump might retreat from the extensive tariffs introduced on April 2. Additionally, President Trump has consistently declined to indicate whether he would consider negotiating tariff rates lower than the 10% base rate applied to almost every country earlier this year.

Negotiations with China, the globe’s second biggest economic power, are still in their early stages. Earlier on Wednesday, Trump stated that he was not prepared to reduce tariffs on China beforehand so as to facilitate more meaningful talks with Beijing regarding trade matters.

"No," Trump responded Wednesday when questioned by a journalist about whether he would consider reducing the 145% tariffs imposed on Chinese goods.

--Assisted by Simon Kennedy, Alex Wickham, Hadriana Lowenkron, Lianting Tu, John Harney, Meghashyam Mali, and Justin Sink.

(Updated with Starmer's comments in the third paragraph.)

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