US President Donald Trump announced, on Thursday, May 8, a trade agreement with the United Kingdom, which would be the first such deal since he launched his global tariffs blitz. Trump provided no details about the scope of the agreement, which comes a month after he imposed sweeping tariffs on US trading partners on his April 2 "Liberation Day." "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," the president posted on his Truth Social platform. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!" Trump is set to speak further about the agreement at a news conference in the White House scheduled for 10:00 am (1400 GMT).
Trump has, for weeks, claimed that countries are lining up to strike trade agreements with the US. Trump slapped 10% tariffs on imports from around the world, including Britain, but he temporarily froze higher rates on dozens of nations to allow for negotiations.
The Wall Street Journal described it as a "framework" agreement, suggesting it was far from a comprehensive free trade deal sought by the UK following its departure from the European Union.
Reaching a post-Brexit agreement with the US has been the Holy Grail for Britain since it exited the European Union at the start of the decade. London is keen to achieve some type of accord with Washington ahead of an EU-UK summit on May 19, which is due to reset ties with the 27-nation bloc. A US-UK deal could prove problematic for the EU, which is struggling to reach an acceptable trade deal of its own with the US. The EU remains Britain's biggest trading partner, while the United States is the UK's single largest country trading partner.
British Prime Minister Keir Starmer is also set to give an update on the matter on Thursday. "Talks with the US have been ongoing and you'll hear more from me about that later today," he told a London conference on defense. "But make no mistake, I will always act in our national interest, for workers, businesses and families, to deliver security and renewal for our country," the PM added. Trump described Starmer as a tough negotiator following the latter's visit to Washington in February.
The Labour leader, who, like Trump, won power last year, had pushed for a trade deal before the president unleashed his tariffs blitz on Britain and countries worldwide. Britain struck a free-trade agreement with India this week, its biggest such deal since leaving the EU, after negotiations relaunched in February following US tariff threats.
Reports have suggested that Washington may reduce certain tariffs on British products in exchange for relief from the UK's digital services tax paid by US tech giants. The film industry – a key UK export for the services sector – is also in Trump's sights.
London did not retaliate against Trump's 10% tariff imposed on UK imports, nor to the higher 25% levies for steel, aluminium and the automotive sector.
Sky News reported that London has agreed concessions on food and agriculture imports with Washington in exchange for easing export tariffs on the automotive industry.
The Financial Times added that London has sought to avert possible future US tariffs on major industries including pharmaceuticals and aerospace.
The Bank of England cut its interest rate by a quarter point to 4.25% on Thursday as the tariffs threaten to weaken global economic growth.