UK and U.S. To Announce Tariffs Deal
The U.S. and the U.K. are set to announce a new trade agreement on Thursday aimed at lowering tariffs on key goods, marking the first breakthrough since President Donald Trump introduced a large range of global tariffs last month. Trump teased the deal on Truth Social, calling it a “MAJOR TRADE DEAL” with a “highly respected country.” Prime Minister Keir Starmer is expected to confirm the agreement later today, with officials from both governments indicating the deal will likely reduce tariffs on steel and automobiles, sectors that have been hit hard by previous 25% U.S. tariffs.
While full details are still under wraps, British sources say the deal could include a reduced digital tax that affects U.S. tech companies and lower tariffs on American cars. However, the U.K. has refused to relax its food standards to boost U.S. agricultural imports. Despite the expected limited scope of the deal, the agreement is seen as politically significant for both Trump as he looks to scale back trade tensions and Starmer as he tries to protect British businesses without upsetting his relations with the EU.
This deal is part of a broader push by the Trump administration to reset trade ties with their major partners. With a 10% baseline tariff still in place globally and negotiations ongoing with countries like India, Japan, and Vietnam, the U.S. is trying to calm markets after weeks of disruption. Meanwhile, U.S. and Chinese officials are preparing for high-stakes trade talks in Switzerland that could shape the next phase of the global economy.
