Zeke Miller and Jill Lawless, Associated Press
WASHINGTON (AP) — The US and the UK are scheduled to announce a trade deal on Thursday that will lower the cost of President Donald Trump’s cleaning fees and bring a political victory to British Prime Minister Kiel Starmer.
Trump posted on his true social platform. The deal, scheduled to be announced at 10am, will be “a complete and comprehensive one that will solidify US-UK relations for years to come.”
This is the first bilateral trade agreement announced since Trump began slamming tariffs on US trading partners. He said: “Many other deals at a serious stage of negotiation continue!”
The priority said the prime minister will “update” US trade talks later Thursday.
“You know, discussions with the US are ongoing and you’ll hear more from me about it later today,” the priorities said at the Defense Conference in London.
The contract likely does not reach a full free trade agreement, but provides tariff relief to certain sectors.
The President was imposed a 10% tax on imports from the UK, and a 25% tariff on automobiles, steel and aluminum, on the premise that by doing so, more factory jobs would be grown domestically.
The main goal of UK negotiators is to reduce or lift UK automobile and steel import taxes. According to the National Bureau of Statistics, the US is the largest destination for UK automobiles, accounting for more than a quarter of UK automobile exports in 2024.
The UK is also seeking tariff exemptions on drugs, while the US wants greater access to the UK market for agricultural products. The priority states that it will lower UK food standards and will not allow chlorine-linthia American chicken or hormone-treated beef.
The British government sees it as evidence of a comprehensive approach to Trump, which has avoided direct conflict and criticism. Unlike the European Union, the UK did not announce retaliatory tariffs on US goods in response to Trump’s import tax.
Trade contracts with the UK are symbolically important and are a relief for UK exporters. However, the agreement will have little to do to address Trump’s core concerns about the persistent trade deficit that have been urged to impose import taxes on countries around the world.
The US operated a $11.9 billion trade surplus with the UK last year on goods, according to the Census Bureau. The $68 billion goods imported by the US from the UK last year accounted for just 2% of all goods imported into the country.
The US is far more important to the UK economy. Government statistics show that the majority of UK exports to the US are services rather than goods, but it was the UK’s biggest trading partner last year.
Since voting to leave the European Union in 2016, Trump has shown his desire to attack a trade deal with the UK. But just like on recent Tuesday, Trump showed he was not aware of the possible terms of the deal when asked about the possibility.
“Do they offer us concessions?” Trump told reporters. “I hope so… they want to trade very badly.”
Trump previously said his leverage at his meeting would be US consumers, but he appeared to suggest that the UK would start buying more American-made products.
“I think the UK, like all other countries, wants to go shopping in the United States,” he said.
Trade contracts with the US are one of several that priority governments are trying to attack. On Tuesday, the UK and India announced trade after three years of negotiations. The UK is also trying to lift up some of the trade barriers with the EU that were imposed when the UK left the bloc in 2020.
Jill Lawless was reported from London. Josh Balk contributed to this report from Washington.
Original issue: May 8, 2025 7:32am EDT
