US, UK to announce tariff-cutting trade deal as Trump reshapes global trade system
The United States and the United Kingdom are poised to announce a new trade agreement on Thursday that will reduce tariffs between the two longtime allies, according to officials familiar with the matter.
The anticipated deal follows months of diplomatic pressure from the UK government after President Donald Trump imposed sweeping tariffs on nearly every major trading partner last month.
The announcement is expected to be made during a press conference at the White House, hinted at by President Trump in a post on social media Wednesday night:
“Big News Conference tomorrow morning at 10:00 A.M, The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”
Since imposing a 10% global tariff on April 2, Trump has paused enforcement for 90 days, prompting a global rush as nations seek to secure exemptions or reach bilateral deals before the deadline. Although the UK avoided Trump’s higher “reciprocal” tariffs, it still faces significant levies—including a 25% import tax on steel, aluminium, and cars.
The potential agreement with the UK could signal a broader shift in trade strategy, as Washington also pursues deals with India, Israel, Japan, South Korea, and Vietnam. A US–India deal was reportedly finalized earlier this week, and similar discussions are underway with several other countries.
President Trump has made it clear that his administration aims to overhaul the international trading system, calling on nations to negotiate new agreements tailored to US interests.
Meanwhile, the US and China have also agreed to resume high-level talks aimed at easing escalating trade tensions. Chinese Vice Premier He Lifeng will travel to Switzerland from May 9–12 for meetings with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. This follows Trump’s dramatic tariff hikes on Chinese goods—now as high as 145%—and retaliatory measures from Beijing.
It marks the first major diplomatic engagement between the world’s two largest economies since Chinese Vice-President Han Zheng attended Trump’s inauguration in January.
While hopes are high for breakthroughs, trade experts caution that negotiations with China and other countries are likely to stretch over several months due to complex regulatory and political factors.
In a separate development, the UK this week finalized a trade agreement with India aimed at boosting exports of whisky, cars, and manufactured goods, while reducing tariffs on Indian clothing and footwear.
As Trump’s administration forges ahead with its aggressive trade policy, analysts say the deals with key allies like the UK could set the tone for a new era in American trade diplomacy.
