Exciting Trade Deal on the Horizon: USA and UK Set to Announce Agreement
U.S. and U.K. allegedly planning to reveal trade deal completion - U.S. and UK appear set to reveal finalized trade deal terms.
Get ready for some major news! It appears that the USA and the UK are about to announce a groundbreaking trade agreement, according to Donald Trump's Truth Social platform. He's promising a "significant" pact with a "major, highly respected country" by 10:00 local time (16:00 CEST) tomorrow. Meanwhile, Prime Minister Keir Starmer plans to update the nation on the negotiation progress later in the day.
Trump and Starmer have already had "productive negotiations" between their historically close countries, which are known for their diplomatic and economic "special relationship." The trade between these economies is relatively balanced, with Britain exporting £59.3 billion (€69.7 billion) in goods to the USA in 2024, while importing €57.1 billion from there. This balanced trade could help finalize the deal.
Trump aims to reduce the USA's trade deficit and bring jobs back with his high tariffs. He recently announced a minimum tariff rate of ten percent for almost all imports from trading partners. Originally, he imposed higher surcharges on around 60 countries, but just hours after these tariffs went into effect, he announced a "90-day pause."
The exception to this rule is China, with import tariffs onto the USA reaching an eye-watering 145 percent. China responded with retaliatory tariffs of 125 percent. Representatives from both countries are set to meet in Switzerland over the weekend to discuss the possibility of starting negotiations.
Economist Jonathan Portes from King's College London predicts that this potential agreement with the USA would be more about "damage control" than a real boost for the British economy. However, he added that it would "certainly be a relief for businesses" given the high tariffs already imposed, including a 25 percent surcharge on cars, steel, and aluminum, applicable to British products. The USA is a crucial market for manufacturers.
Insights
This historic agreement, announced on May 8, 2025, by the U.S. Department of Commerce and the Office of the U.S. Trade Representative (USTR), eliminates longstanding market barriers in the UK creating a $5 billion opportunity for new exports from U.S. farmers, ranchers, and producers. This deal could result in economic growth for both countries through export market expansion, particularly benefiting agricultural producers, which could lead to increased revenue and job creation in the farming and production sectors. Improved access to U.S. goods and services could lower costs for consumers and businesses, strengthening overall economic ties between the two countries as stronger economic and strategic allies in the global marketplace.
- The trade deal between the United States and the United Kingdom, set to be announced, promises a significant pact, reveals Donald Trump on his Truth Social platform.
- Prime Minister Keir Starmer is scheduled to update the nation on the progress of the negotiations between the two countries, known for their historical special relationship.
- The USA, aiming to reduce its trade deficit, intends to reduce tariffs for imports from the UK, as implied by the ten percent minimum tariff rate announced.
- Economist Jonathan Portes predicts that the potential agreement would be more about damage control for the British economy rather than a real boost, but it would provide relief for businesses given the high tariffs already imposed.
- The U.S. Department of Commerce and the Office of the U.S. Trade Representative announced the historic agreement on May 8, 2025, stating it eliminates market barriers in the UK, creating a $5 billion opportunity for new exports from US farmers and producers.
