United Kingdom and the United States announce trade agreement, Trump's first deal since tariffs begin – Country
The United States and Britain are expected to announce a trade deal on Thursday that would lower the burden on President Donald Trump's massive tariffs and bring political victory to Prime Minister Keir Starmer.
Trump posted a deal on his truth social platform that will be announced at 10 a.m. ET (1400 GMT) that will be “a complete and comprehensive agreement that will strengthen the relationship between the United States and the United Kingdom for many years to come.”
This is the first bilateral trade deal announced since Trump began cracking down on tariffs on U.S. trading partners. “Many other deals are under serious negotiations,” he said!
Starmer's office said the prime minister would “update” on U.S. trade talks later Thursday.
“As you know, the conversation with the United States has been going on, and you will receive more information about me later today,” Starmer said at the defense conference in London.
The agreement may not have reached all free trade agreements, but will provide tariffs to certain sectors.
The president imposed a 10% tax on imports from the UK, and a 25% tariff on cars, steel and aluminum, which would promote more factory jobs at home.
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A major goal of British negotiators is to reduce or increase import taxes on British automobiles and steel. According to the National Office for Statistics, the United States is the largest destination for British cars, accounting for more than a quarter of UK car exports in 2024.
The UK is also seeking tariff exemptions on medicines, while the US wants to enter more of the UK agricultural products. Starmer's government said that the use of chlorine-containing American chicken or hormone-treated beef will not lower the UK food standards.
The British government will see it as a testament to Steman’s emollient approach to Trump, which avoids direct confrontation or criticism. Unlike the EU, the UK has not announced retaliatory tariffs on U.S. goods on Trump's import taxes.
A trade agreement with the UK is symbolically important, and it is a relief for British exporters. But the deal doesn't help Trump's core focus on the ongoing trade deficit, prompting him to impose import taxes on countries around the world.
According to the Census Bureau, the U.S. made $11.9 billion in transactions with the UK's commodity surplus last year. The US$68 billion in goods imported from the UK last year only accounted for 2% of all goods imported into the country.
The United States is more important to the British economy. According to government statistics, it was the UK's largest trading partner last year, although most of its exports to the United States were services rather than goods.
Since the 2016 vote, Trump has shown a desire to reach a trade agreement with the UK. However, Trump showed no awareness of the possible terms of the deal until Tuesday when asked about the possibility.
“Do they provide concessions for us?” Trump told reporters. “I hope so…they do want a very bad deal.”
Trump has previously said his leverage in the negotiations will be American consumers, but he seems to suggest that Britain will also start buying more American-made goods.
“I think Britain wants to… go shopping in the United States of America like every other country,” he said.
The trade agreement with the United States is several of the Starmer administration's attempt to strike. On Tuesday, Britain and India announced a deal after three years of negotiations. The UK is also trying to remove some of the barriers to trade with the EU when the UK left the group in 2020.
– Jill Lawless reported on London. Josh Boak contributed to the Washington report.
& Copy 2025 Canadian Press
