Breaking: Expected Announcement of US-UK Trade Agreement - A Turn in Trade Relations
The USA and UK appear set to announce the conclusion of their trade deal. - U.S. and U.K. seem poised to unveil finalized trade deals.
Get ready for some major trade-related news! Donald Trump just announced on his Truth Social platform that he will unveil a significant trade deal with a "major, highly respected country" this very Thursday, selling it as the "first of many" such agreements. The press conference is set for 10:00 local time (16:00 CEST). In response, Keir Starmer, the UK Prime Minister, is set to weigh in on the progress of negotiations with the USA later today.
Ever since talks commenced, Trump and Starmer have spoken of "productive negotiations" between their historically close countries. As diplomatic and economic bedfellows, the USA and UK share a "special relationship."
Researching trade figures from 2024 shows that the two economies had a relatively balanced exchange, with Britain exporting goods worth £59.3 billion (€69.7 billion) to the USA, while importing goods worth €57.1 billion from there. Such parity may have aided the negotiations' progress. Trump's primary aim to reduce the USA's trade deficit with other countries and bring jobs back to the country with his high tariffs could also have played a role.
Trump has announced a minimum tariff rate of ten percent for nearly all imports from its trading partners, with surcharges initially much higher for around 60 countries. However, just hours after these higher tariffs came into effect, Trump backtracked and announced a "pause" for 90 days.
A significant exception to this pause is China, where tariffs on imports from the People's Republic to the USA were increased to 145 percent. China retaliated with retaliatory tariffs of 125 percent. Representatives of both countries are due to meet in Switzerland this weekend to discuss the possibility of starting negotiations.
Acclaimed economist Jonathan Portes from King's College London predicts that any agreement with the USA would be "more about damage control than a real boost for the British economy." Nevertheless, "it will clearly be a relief for businesses." After all, the UK hasn't been entirely spared from high tariffs, with a 25 percent surcharge on cars, steel, and aluminum also applying to British products. The USA is an important market for manufacturers.
The reported US-UK trade agreement includes various key details, such as tariff reductions, market access enhancements, intellectual property and other commitments, and provisions for termination and review. The motive behind this agreement is to deepen the trade relationship between the two countries based on mutual trust and fair trade principles.
Stay tuned for more updates as we learn more about this anticipated trade agreement!
- USA
- Donald Trump
- UK
- Trade Agreement
- US President
- London
- Keir Starmer
- US Media
- In response to Donald Trump's announcement about a significant trade deal with a "major, highly respected country," Keir Starmer, the UK Prime Minister, is expected to provide an update on the progress of negotiations with the USA later today.
- The European Parliament should closely monitor the anticipated US-UK trade agreement, as it may have implications for business and trade relationships with both the USA and the UK.
- The reported US-UK trade agreement includes commitments on tariff reductions, market access enhancements, intellectual property, and other provisions aimed at deepening the trade relationship based on mutual trust and fair trade principles.
- The expected agreement between the USA and UK could serve as a precedent for future trade negotiations and impact the trade deficit, forcing the European Parliament and the Commission to reassess their own trade strategies.
- Despite the predicted relief for UK businesses and the potential for a boost in trade relations with the USA, acclaimed economist Jonathan Portes from King's College London has suggested that the overall impact on the British economy may be more about damage control than a substantial benefit.
