The US and UK are expected to announce a trade deal today, after US president Donald Trump shared on his Truth Social account that there would be a “major trade deal” with a “big, and highly respected country”.
While the president did not specify which country it was, a number of sources have told the media a deal has been struck between the US and UK.
The announcement is expected to take place at 3pm GMT (10am EDT), and is expected to soften the initial blow of the wide-ranging trade tariffs announced by the US in April. He later changed tack, pausing many of the intended tariffs bar those levied at China, but the UK has been negotiating hard since the announcement to secure a preferable deal.
Trump did not go into the specifics of the deal, but discussions with the US have included sectors such as cars, aluminium and steel, while the UK has ruled out lowering food standards in order to bring more US agricultural products into the country.
Follow our live coverage for all the latest on the US-UK trade deal:
Live6 updates
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‘Likely to generate inflation’: Fed Chair Powell paints bleak picture of US under Trump tariffs
Federal Reserve chair Jerome Powell has warned of the negative effects of Donald Trump’s tariffs. (Getty)
The wide-ranging tariffs promised by president Trump could cause a nightmare scenario where prices rise and the economy stumbles, a process that was commonly called “stagflation” during the crises that roiled the global economy in the 1970s. The straightforward Fed logic of lowering borrowing costs when the economy is struggling and raising them to counter rapid inflation is put in a double bind by the hypothetical, and Jerome Powell admitted as much.
“It’s really not at all clear what it is we should do,” Powell said. “There’s so much uncertainty.”
Read the full story from Salon.
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Starmer and Trump’s previous meeting: A recap
Keir Starmer and Donald Trump discussed a deal when they met in February. (PA)
In February, Keir Starmer and Donald Trump met in Washington DC to discuss trade while the threat of tariffs loomed. The talks were said to be productive, focusing on a potential deal to ease tariff impacts.
Trump gave hints that a deal could be struck, saying: “The UK’s a great partner. We’ll see what we can do to make it fair.”
A Number 10 spokesperson said after the meeting that that pair had spoken about “the ongoing and productive discussions between the UK and US on trade”.
Since then, negotiations have seemingly progressed, with chancellor Rachel Reeves saying last month that the government was still “working to protect” the UK from Trump’s tariffs.
While a deal may be close, Trump has always emphasised US interests, declaring: “It’s gotta be great for America.” Recent reports suggested Trump prioritised other trade deals, calling the UK a “second-order priority”.
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What US tariffs are in place for the UK?
Donald Trump imposed tariffs last month. (Reuters)
Last month Trump imposed a 10% baseline tariff on nearly all UK goods exported to the US. Additionally, 25% tariffs apply to specific sectors, including UK cars, steel, and aluminium products. However, some exemptions exist for products including copper and pharmaceuticals. Trump imposed the “reciprocal tariff” policy to address what he says are trade imbalances.
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Prime minister to give update on talks today
Keir Starmer will give an update on a potential deal later today. (PA)
While there has been no official confirmation from the government yet, a Number 10 spokeswoman said that talks on a deal with the US “have been continuing apace” and prime minister Keir Starmer will provide an update later today.
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Trump announcement on Truth Social
Donald Trump’s post on Truth Social this morning. (Truth Social)
Donald Trump posted on his Truth Social platform the news about a “major trade deal” with a “big and highly respected country” in the early hours of this morning. Reports quickly emerged that that the UK was the country in question.
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