UK and US to sign trade deal

The United States and the United Kingdom are expected to sign a major trade deal, the first President Trump has signed since imposing sweeping import tariffs earlier this year.

Announced on the night of Wednesday, May 7, via social media, Trump declared that preparations for a ‘major trade deal’ with a ‘highly respected’ country, widely believed to be the UK. A press conference is scheduled for Thursday morning at 10am in the Oval Office (4pm in Spain) to give further details.

While specifics remain a secret, negotiations are said to be in their final stages, although whether it is a finalised agreement or a deal that is close to being signed is yet to be seen. The UK has requested tariff relief in certain sectors, including automotive, food and drink, pharmaceuticals, and steel. In exchange, the White House is said to be looking for lower UK tariffs on American cars and agricultural products, as well as the removal of taxes on US tech companies. Trump’s tariff policy, which includes a 10 per cent tax on UK imports, which is the lowest among trading partners, and a 25 per cent tariff on foreign steel, aluminium, and cars, has pressured nations to negotiate.

US and UK trade deal could mark closer political alignment

The UK, relatively spared compared to others, still faces economic risks from the measures. Trump has long argued that his administration’s imposing of tariffs deals with previous imbalances in global trade, claiming that other countries have long exploited trade deals with the US.

This will be a second trade deal the UK has signed in recent weeks after arriving at an agreement with India, but one that is set to leave the UK out of pocket to the tune of £200 million annually in lost tax revenue. A US-UK deal could reshape bilateral trade, with broader implications for geopolitical policy, such as the UK’s increasing alignment with the EU.