Foreign media broke the news that the United States will announce a trade deal with the United Kingdom?

Source: Jin10

The New York Times cited three informed sources as saying that U.S. President Trump is expected to announce a trade agreement between the U.S. and the U.K. on Thursday.

On Wednesday evening local time, Trump hinted on social media that a new trade agreement will be reached, but did not specify which country is involved. He wrote: “There will be a major press conference in the Oval Office at 10 AM tomorrow (10 PM Beijing time tonight) regarding a significant trade agreement reached with representatives of a respected major country. This is the first (agreement reached)!!”

The White House spokesperson refused to comment on the content of Trump’s post, and the spokesperson for the British Embassy in Washington also did not respond to a request for comment.

The agreement will become the first trade deal announced by Trump after imposing high tariffs on dozens of U.S. trading partners. Previously, he temporarily suspended some tariff measures to allow other countries to reach an agreement with the United States.

The agreement between the US and the UK is significant for both countries, as both sides have long sought closer economic cooperation. The details of the agreement have not been immediately disclosed, but the two countries had discussed reducing UK tariffs on US cars and agricultural products, as well as eliminating taxes on US tech companies.** It is currently unclear whether the agreement has been finalized or if the two sides have only announced a framework agreement, with negotiations set to continue in the coming months.

The Trump administration has been trying to urge other countries to quickly reach trade agreements with the United States. On April 2, Trump imposed punitive tariffs on dozens of trading partners, but quickly backed down after panic in the bond market. Trump suspended most of the tariffs for 90 days to allow the U.S. to negotiate with other countries.

However, he still retained 10% of the global tariffs, including taxes on the UK. Unlike other countries, the UK was not subjected to higher “reciprocal tariffs” because its imports from the US exceed its exports. US government officials stated that they are not considering eliminating this 10% tariff in the trade agreement.

The UK is also facing a 25% tariff imposed by Trump on foreign steel, aluminum, and automobiles, and the British side has been urging the US to lift this measure.

Trump’s interest in reaching a trade agreement with the UK dates back to his first term when his advisory team negotiated with the UK side but ultimately did not reach an agreement. Since Brexit, the UK has viewed a trade agreement with the US as a means to offset the impact of weakened relations with Europe. During the Biden administration, the UK continued to push for an agreement with the US, but progress has been minimal.

For UK Prime Minister Starmer, this agreement will prove that his careful management of Trump has yielded results. During his visit to the White House in February, Starmer also brought an invitation from King Charles III for Trump to make another state visit to the UK.

The Trump administration also seems to be on the verge of reaching agreements with India and Israel, and is continuing negotiations with countries such as South Korea, Japan, and Vietnam. However, Trump once again showcased his unpredictability regarding economic policy on Tuesday, downplaying the prospects of a trade agreement, stating that other countries need these agreements more than the United States.

“Everyone is asking, ‘When will we sign the agreements?’” Trump said while pointing to Commerce Secretary Ross. “We don’t have to sign agreements. Howard, if we want, we can sign 25 agreements right now. But they need to sign agreements with us.”

On Tuesday, the UK also reached a trade agreement with India to reduce bilateral tariffs and provide more access for British companies to enter sectors such as insurance and banking in India. The agreement was finalized after nearly three years of negotiations.