U.S. and U.K. reportedly plan to announce finalization of trade deal - U.S. and U.K. on Brink of Announcing Completed Trade Deals.
Get ready for a shakeup in international trade! Donald Trump has declared that he'll unveil a "significant" trade agreement with a "major, highly respected" nation on Thursday. He's not holding back and calling it the "first of many" such deals. A press conference is set for 10:00 local time (16:00 CEST). In London, Prime Minister Keir Starmer has promised to speak on the progress of negotiations with the USA later in the day.
Trump and Starmer have been busy chatting, thanks to their historically tight relationship. The USA and the UK, two economies with a special bond, have been engaged in "productive negotiations."
Trade between these economies is pretty balanced, with Britain exporting £59.3 billion (€69.7 billion) worth of goods to the USA in 2024 and importing €57.1 billion from there. This balance could help in striking a deal. Trump's keen on reducing the USA's trade deficit and creating jobs by enforcing high tariffs.
The US President has set a minimum tariff rate of ten percent for almost all imports from all trading partners. He initially slapped some countries with partly much higher surcharges around 60 times. But just a few hours after these higher tariffs kicked in, Trump did a quick about-face and announced a "pause" of 90 days.
China's the exception, with Trump hiking tariffs on imports from the People's Republic to the USA to a whopping 145 percent. Beijing struck back with retaliatory tariffs of 125 percent. Representatives from both countries will be meeting in Switzerland this weekend to discuss a potential negotiation round.
So, what does all this mean for the UK? Economist Jonathan Portes from King's College London believes any agreement with the USA would be more about "damage control" than a significant boost for the British economy. But it's still a relief for businesses, considering the UK hasn't dodged high tariffs completely – a 25 percent surcharge still applies to cars, steel, and aluminum, including British products.
- USA
- Donald Trump
- United Kingdom
- Trade Agreement
- US President
- London
- Keir Starmer
- Global Economy
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Key Points and Details
- The trade deal between the USA and the UK will be officially unveiled on May 9, 2025, as per former President Donald Trump's February promise [2].
- The deal is aimed at expanding market access, reducing non-tariff barriers, and creating a more level playing field for American exporters [2].
- The deal is the first significant trade pact under Trump's new trade strategy targeted at countering globalist trade policies and promoting U.S. economic growth [2].
- The deal isexpected to benefit American agricultural exports, particularly beef and renewable fuels, as the UK has strong demand for these products [2].
- The deal maintains a 10% baseline tariff on UK imports into the US, which could potentially lead to inflationary pressures [1].
- This 10% tariff is significantly higher than the average pre-2021 tariff rate of 3% in the US, making it the highest baseline tariff level since World War II [1].
- The 10% tariff is expected to remain for all future trade talks initiated by the current administration [1].
References:[1] Bell, J. (2025, May 9). U.S.-U.K. trade deal: what you need to know. The Hill.[2] Associated Press. (2025, May 9). Trump announces U.K. trade deal, calling it 'a great one.' CNN Business.
- The much-anticipated trade agreement between the United States and the United Kingdom will officially be unveiled on May 9, 2025, as per former President Donald Trump's February promise.
- This significant trade pact is a part of Trump's new trade strategy, aimed at countering globalist trade policies and promoting U.S. economic growth.
- The deal is expected to expand market access, reduce non-tariff barriers, and create a more level playing field for American exporters.
- The deal is expected to benefit American agricultural exports, especially beef and renewable fuels, as the UK has strong demand for these products.
- Despite the benefits, the deal maintains a 10% baseline tariff on UK imports into the US, which could potentially lead to inflationary pressures, making it the highest baseline tariff level since World War II.
