According to sources in Washington and London, the US and the UK are set to announce a new trade deal on Thursday. This could be significant in the context of President Donald Trump’s recent tariff policies and global trade tensions. However, analysts say the deal will be limited in scope and is only the framework of a full-fledged agreement.
Trump imposed a 10 percent tariff on global imports on April 2, declaring it ‘Liberation Day’. Although many countries have been given temporary exemptions from this tariff to keep the door open for negotiations. This will be the first formal trade deal announced after the imposition of this tariff.
Trump wrote on social media on Wednesday, ‘A significant deal will be announced with a great and respected country.’
US media reported that this could be a framework agreement with the UK, the details of which will be determined through future negotiations. Trump will make the formal announcement at a press conference in the Oval Office at 10 a.m. local time (8 p.m. Bangladesh time).
Downing Street in London said British Prime Minister Keir Starmer would give an update on ongoing talks with the United States today. A spokesman said, “Talks are progressing rapidly and the prime minister will speak about the matter today.”
Starmer has been active on the deal since a visit to Washington in February. Like Trump, he also comes to power in 2024. During the visit, Trump called him a “tough negotiator” and said, “There is a possibility of a great deal.”
Under the agreement, the United States could reduce tariffs on some British goods and in return, the UK could lift a digital services tax imposed on technology giants.
Jonathan Portes, an economist at King’s College London, believes, “The deal is essentially an attempt at damage control. Even a small tariff reduction will put pressure on businesses.
Trump has repeatedly praised the British royal family and has family history and a golf course in Scotland. Starmer’s recent visit marks the second time Trump has been invited to a royal visit, which could further strengthen the diplomatic ties between the two countries.
While not a final deal, the announcement of the framework is set to be a significant chapter in global trade politics—especially in the context of a potential tariff war during Trump’s second term.
Source: AFP