Donald Trump plans to announce a trade deal with the UK on Thursday, according to people familiar with the matter, in what would make Britain the first country to reach an agreement with the US since the White House announced sweeping tariffs last month.
The US president said in a post on his Truth Social platform on Wednesday that a “Big News Conference” was coming “concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY”.
The expected UK-US agreement is one of 17 that Trump has been aiming to sign with its major trading partners as the White House rows back on the global tariffs announced on April 2.
The US president has been under pressure to deliver some early deals to convince investors that he is serious about de-escalating after his April 2 “liberation day” announcement triggered turmoil across financial markets.
The full scope and details of the trade pact expected on Thursday were not clear, including whether further negotiations would be needed to finalise it.
The Financial Times reported on Tuesday that Washington and London were close to agreeing a pact that would offer lower-tariff quotas for British cars and steel exports, which were hit with 25 per cent levies by Trump in February and March.
UK Prime Minister Sir Keir Starmer is also under pressure to strike a deal with Washington after the car and steel industries warned of the “devastating” effects of the tariffs.
Sparing the steel and car industries from the full brunt of the duties would help offset the impact of the “liberation day” levies on UK exports to the US, which were set at the baseline rate of 10 per cent last month.
A spokesperson for the prime minister said: “The United States is an indispensable ally for both our economic and national security. Talks on a deal between our countries have been continuing at pace and the prime minister will update later today.”
Trump administration officials have also been holding talks with multiple countries including Japan, Vietnam, India and the EU.
US Treasury secretary Scott Bessent is set to travel to Switzerland on Thursday ahead of talks with Chinese officials. Tensions between Washington and Beijing have triggered fears of a damaging decline in trade between the world’s two largest economies.
Trump’s shift towards trade negotiations followed a sell-off in stock markets last month after the US hit many trading partners with so-called reciprocal tariffs of up to 50 per cent. However, he then lowered those tariffs to the 10 per cent baseline rate for 90 days to give room for negotiation.
As well as a backlash from investors, Trump has faced recriminations from Democrats and even some Republicans who believe his sweeping tariffs are damaging the economy and risk reigniting inflation. Polls have shown that Americans are souring on Trump’s handling of the economy.
However, Trump and his top officials have continued to defend their tariff policies on the grounds that they want to reset the global economy so the US produces more domestically and is less reliant on imports — even if it brings some short-term disruption.
The White House did not respond to requests for comment.
The New York Times first reported that Thursday’s trade announcement related to the UK.
