Titled: The Lowdown on the Expected US-UK Trade Deal Announcement
US and UK reportedly prepare to unveil completion of trade pact - Trade Accords Between US and Britain Seem Imminent, Set for Official Announcement
Get ready, folks! Donald Trump's on Truth Social, dropping a bombshell: he's set to unveil alandmark trade deal with a major, A-list country on Thursday. He's calling it "the first of many" such agreements and promises a press conference at 10:00 local time (16:00 CEST). Over in London, Keir Starmer's expected to spill the beans on the US-UK trade talks later today.
Both leaders have hinted at productive talks between these historically chummy countries. The USA and UK share a special bond born out of diplomatic and economic ties.
The trade between these two powerhouse economies is currently neck-and-neck. In 2024, Britain exported goods worth £59.3 billion (€69.7 billion) to the US, and imported goods worth €57.1 billion from there. This balance could play a crucial role in clinching a deal. Trump's aiming to trim the US's trade deficit and bring jobs home with his high tariffs.
Trump's announced a 10% minimum tariff on almost all imports from almost all partners. He initially slapped much higher surcharges on around 60 countries but quickly hit pause, putting a 90-day hold on the stepped-up tariffs.
China's the exception. Trump ramped up tariffs on imports from the People's Republic to the US to 145%, while Beijing retaliated with a whopping 125% tariff. Reps from both nations are set to chat it up in Switzerland over the weekend to smoothen out negotiation floors.
Economist Jonathan Portes from King's College London thinks any deal with the US would mainly serve as "damage control" rather than a major boost for the UK economy. Still, "it'll clearly be a relief for businesses," he says, given the UK hasn't dodged high tariffs entirely. A 25% surcharge on cars, steel, and aluminum also hits British products, with the US being a significant market for manufacturers.
- United States
- Donald Trump
- Trade Agreement
- UK
- Tariffs
- Keir Starmer
- Trade War
Data Investigation:
On May 8, 2025, President Donald Trump announces a tentative framework for a trade agreement between the United States and the United Kingdom. This deal will see the following alterations:
Provisions:
- Tariff Adjustments: The US will ease up on the 25% tariffs on steel and aluminum imports from the UK, with auto tariffs dropping from 25% to 10% for the first 100,000 British vehicles exported to the US.
- Market Access: The UK will streamline trade barriers, granting the US additional markets worth $5 billion for ethanol, beef, machinery, and more.
- Additional Agreements: The deal includes a $10 billion purchase of Boeing airplane parts and a reliable pharmaceutical supply chain for the UK, with US imports set for quicker customs clearance.
- Future Developments: The remaining details of the agreement are to be ironed out over the coming weeks, paving the way for a more comprehensive deal in the future.
Context and Reactions:
- Impact on Trade: The deal holds great potential for British industries that have faced scrutiny from US tariffs, such as automotive and steel manufacturers.
- Global Trade Tensions: This agreement comes after a period of increased tariffs, with the UK previously spared from some higher charges due to significant imports from the US.
- Political Implications: The agreement carries political weight for both nations, with Trump under pressure to show progress in trade negotiations.
- The tentative trade agreement between the United States and the United Kingdom, announced by President Donald Trump on May 8, 2025, includes a reduction of tariffs on steel and aluminum imports from the UK, with auto tariffs dropping from 25% to 10% for the first 100,000 British vehicles exported to the US.
- The deal also includes the UK streamlining trade barriers, granting the US additional markets worth $5 billion for ethanol, beef, machinery, and more.
- Other provisions of the agreement include a $10 billion purchase of Boeing airplane parts by the UK and a reliable pharmaceutical supply chain for the UK, with US imports set for quicker customs clearance.
- The remaining details of the agreement are to be ironed out over the coming weeks, paving the way for a more comprehensive deal in the future.
- Economist Jonathan Portes from King's College London suggested that the deal would serve as "damage control" rather than a major boost for the UK economy, but it will undoubtedly be a relief for businesses given the significant market share of the US for many British industries.
