US President Donald Trump is expected to announce a trade deal with the United Kingdom on Thursday.
Late on Wednesday, Trump posted on Truth Social announcing a “big news conference… concerning a major trade deal” with a “highly respected country.”
The news conference at the Oval Office is due at 10 a.m. in Washington DC (1400 GMT) on Thursday.
While the details of the deal remain unclear, a spokesperson for the UK government said that Prime Minister Keir Starmer would provide an update on the ongoing trade negotiations with the US later in the day.
A British official, however, suggested that the UK was considering lowering its own tariffs on US cars as well as cutting digital sales tax affecting US tech companies, Reuters reported.
Trump’s tariff negotiations put to the test
Since taking office early this year, the Trump administration has been actively expanding the US tariff policies.
In April, Trump announced broad tariffs on US trading partners, however, most of the tariffs announced were later reversed or paused to allow for trade negotiations. However, the 145% levy on Chinese imports still stands.
The US president has repeatedly said that multiple countries are eager to finalize deals with the US.
Investors will be watching to see if Trump can de-escalate the trade war that he triggered which in turn sparked chaos in US stock markets.
Officials from the US and China are meeting in Switzerland on Saturday to find a resolution to the trade war between the world’s two largest economies.
UK eager for trade deals post-Brexit
Meanwhile, since leaving the European Union, the UK has sought to expand global trade ties. But Brexit also brought some light relief, with Trump’s announced tariffs on the UK only reaching 10%, half of the 20% announced against the EU.
Nevertheless, a trade deal with the US is seen as key by Starmer’s government.
“The United States is an indispensable ally for both our economic and national security,” a Downing Street spokesperson said. “Talks on a deal between our countries have been continuing at pace and the Prime Minister will update later today.”
Britain earlier this week struck a free trade agreement with India — the biggest trade deal since Brexit.
On Tuesday, a UK official announced good progress amid talks with Washington on lowering tariffs on steel and autos. Discussions are also ongoing regarding Trump’s recent announcement of 100% tariff on all movies produced outside the US.
Edited by: Alex Berry
