US President Donald Trump is set to announce a trade agreement with the UK on Thursday, which could have implications for his tariffs assault. According to reports, the agreement would be the first such trade agreement since Trump imposed sweeping tariffs on US trading partners.
A Downing Street spokeswoman said, “Talks on a deal between our countries have been continuing at pace and the prime minister will update later today.” The scope of the deal is reportedly limited, with some suggesting it may be a framework for an agreement subject to further negotiation.
Jonathan Portes, professor of economics at King’s College London, noted, “Any deal with the US is likely to be damage limitation rather than an economic boost.” This perspective highlights the challenges in negotiating a comprehensive trade agreement.
Deutsche Bank analyst Jim Reid added, “Given that full trade deals take years to negotiate, this will likely be a framework.” This view is consistent with the complexity of trade negotiations between nations. Trump has claimed that countries are lining up to strike trade agreements with the US.
The potential deal may involve reducing certain tariffs on British products in exchange for relief from the UK’s digital services tax paid by US tech giants. UK Prime Minister Keir Starmer will give an update on trade talks with the US on Thursday.
Quote Highlights
The ongoing talks and potential agreement have garnered significant attention, with key quotes from officials and experts shedding light on the situation:
- “Talks on a deal between our countries have been continuing at pace and the prime minister will update later today.”
- “Any deal with the US is likely to be damage limitation rather than an economic boost.”
- “Given that full trade deals take years to negotiate, this will likely be a framework.”