The United States and Britain are reportedly poised to unveil a new trade agreement framework on Thursday, a deal that could mark the first breakthrough in President Donald Trump’s controversial global tariff campaign launched earlier this year.
Multiple outlets including The New York Times, Politico, and The Wall Street Journal cited unnamed officials who confirmed that the agreement, expected to be announced at a White House press conference at 10:00 a.m. (1400 GMT), would serve as a preliminary framework rather than a fully ratified trade pact.
President Trump, who has characterized the day he imposed sweeping 10 percent tariffs on global imports as “Liberation Day” on April 2, hinted at the announcement via social media Wednesday evening, declaring a “major trade deal” was coming with a “big, and highly respected country.”
That country, sources confirmed, is the United Kingdom — America’s single largest individual trading partner. The move is widely seen as an effort to de-escalate economic tensions following Trump's tariff blitz, which targeted U.S. allies and adversaries alike, including the UK.
In London, Downing Street confirmed British Prime Minister Keir Starmer will provide an “update” on the trade talks later Thursday.
“Talks on a deal between our countries have been continuing at pace and the prime minister will update later today,” a government spokeswoman said.
While details of the deal remain closely held, analysts say the agreement is likely more symbolic than sweeping. It reportedly includes provisions that could see the U.S. ease certain tariffs on British goods — possibly in return for concessions on the UK’s digital services tax, a levy that affects American tech giants.
The announcement would represent a significant political win for both Trump and Starmer, who each came to power last year and have publicly expressed interest in strengthening transatlantic economic ties.
For Britain, the deal would be its most high-profile trade development since it left the European Union and signed a free-trade agreement with India earlier this week.
However, economists are tempering expectations.
“Any deal with the US is likely to be damage limitation rather than an economic boost,” said Jonathan Portes, professor of economics at King’s College London. “Exporters will probably still be facing higher tariffs overall than they were last year.”
Deutsche Bank strategist Jim Reid echoed that sentiment, noting that the “framework” deal will likely keep the 10 percent baseline tariffs intact for now, serving more as a template for future negotiations with other countries.
The EU, which remains Britain’s largest overall trading bloc, may view the bilateral deal with Washington as a disruptive maneuver ahead of a May 19 EU-UK summit designed to reset strained post-Brexit relations.
Still, the announcement underscores the close personal and political rapport between Trump and Starmer. The British leader traveled to Washington in February to kickstart trade talks and personally invited Trump to visit King Charles III for a second state visit, a rare honor aimed at reaffirming the transatlantic alliance.
Trump, whose mother was born in Scotland and who owns a golf course there, has long expressed admiration for the UK and its royal family.
Meanwhile, global markets are watching the development closely. The Bank of England is widely expected to announce a rate cut later Thursday amid fears that Trump’s tariff policies could dampen global economic growth.
Whether the new U.S.-UK trade deal delivers real economic relief or merely signals a pause in Trump’s tariff war, its political implications — and potential ripple effects on global trade — will be closely scrutinized in the weeks to come.
AFP