After Lengthy Negotiations, U.S.-UK Trade Deal to Be Announced Today

After Lengthy Negotiations, U.S.-UK Trade Deal to Be Announced Today
May 8, Washington 2025 — The United States and Britain are set to announce an important trade agreement today, Thursday, which will pave the way for lowering tariffs on goods such as steel and automobiles. This marks the first major agreement since former U.S. President Donald Trump imposed global tariffs in 2018.

From the Oval Office at the White House, Trump will hold a press conference at 10:00 a.m. local time (1400 GMT), where he is expected to announce a "major trade deal with a big and highly respected country." Meanwhile, UK Prime Minister Keir Starmer is also scheduled to provide an update later today, according to Downing Street.

Two British insiders have reported that the framework of the deal may be announced today. The deal could include the reduction of tariff quotas on steel and vehicles — two sectors that were affected by 25% U.S. levies.

In return, the UK is likely to reduce its own tariffs on U.S. cars and cut the digital sales tax that affects U.S. tech companies. However, Britain has made it clear it will not compromise on its food safety standards to give U.S. producers wider market access.

It remains unclear whether the 10% "baseline" tariff imposed by Trump will still be in place. While the deal may be limited in scope, it holds political significance for both countries.

Analysts are watching to see if Trump is stepping back from the global trade war he initiated — which has already created market instability and slowed economic growth.

Britain, on one hand, seeks to strengthen ties with the U.S., while on the other hand, it aims to preserve its restructured trade relationship with the European Union. It has also reached a new trade agreement with India earlier this week.

Meanwhile, the International Monetary Fund (IMF) last month downgraded its growth forecasts for the United States, China, and most other countries, citing the impact of U.S. tariffs and rising trade tensions.

Officials from the U.S. and China are also expected to meet in Switzerland this Saturday, which could mark the first step toward resolving the ongoing tariff war between the world’s two largest economies.