A Major Trade Deal Announcement Between USA and UK on the Horizon!
U.S.A. and UK apparently plan to announce finishing of trade deal - U.S. and UK on Brink of Trade Accord Declaration
Get ready for some significant economic changes! Donald Trump has announced on his Truth Social platform that he'll reveal a momentous trade agreement with a "important, highly respected nation" this Thursday, claiming it as the first of many such deals. A press conference is scheduled for 10:00 local time (16:00 CEST). The British government has also hinted that Prime Minister Keir Starmer will discuss the progress of negotiations with the USA later in the day.
Historically, the USA and UK have shared a diplomatic and economic "special relationship." Challenging times have tested this bond, but both leaders have maintained optimistic tones about ongoing negotiations.
The economic exchange between the two nations has been relatively balanced in recent years. For instance, in 2024, the UK exported goods worth £59.3 billion (€69.7 billion) to the USA, while imports from there amounted to €57.1 billion. This reciprocity could help finalize the agreement. Trump's goal for this deal? Reducing the USA's trade deficit and creating more jobs by applying high tariffs.
Trump has publicly declared a minimum tariff rate of 10 percent for almost all imports from his trading partners. Initially, he enforced much higher surcharges on around 60 countries, but just a few hours later, Trump halted these higher tariffs, announcing a 90-day "pause."
The exception to this temporary trade reprieve? China. Tariffs on imports from China to the USA rose to a staggering 145 percent. In response, China slapped back with retaliatory tariffs of 125 percent. Representatives from both countries will convene in Switzerland this weekend to discuss possible negotiations.
According to economist Jonathan Portes from King’s College London, any agreement with the USA would be "more about damage control than a real boost for the British economy." However, he added, "it would certainly be a relief for businesses" as Britain has not been completely immune to high tariffs, with a 25 percent surcharge on cars, steel, and aluminum also applying to British products. The USA is a crucial market for manufacturers.
But what about this upcoming trade deal between the USA and the UK? Economists believe it could widen approximately $5 billion of increased market access for American exports, with a strong focus on agricultural products such as beef, ethanol, and machinery. Key points of the agreement include:
- Reduction of tariffs on British goods
- Eased trade barriers for American products
- A $10 billion purchase of Boeing airplane parts by the UK
- Secure pharmaceutical supply chain between the two countries
- Rapid customs inspections for U.S. imports
This deal, once formalized, is expected to redefine USA-UK economic relations, focusing on increased market access, tariff reductions, and strategic supply chain security. Stay tuned for further updates!
- The European Parliament, along with the Council and the Commission, are closely monitoring the upcoming trade deal announcement between the USA and UK, understanding its potential impact on their general-news agenda.
- Keir Starmer, chairman of the Labour Party and leader of the UK opposition, found himself dealing with a different type of negotiations on the same day, deliberating the progress of business and politics surrounding the US trade deal during a scheduled discussion.
- With tension rising over the uncertainty of this major trade deal, economists in Europe have started discussing the possible repercussions for the European Union's own trade deficit and exported goods, in light of the proposed American tariff reductions.
- Amid the looming announcement of the trade deal between the USA and UK, political analysts have suggested that the pause in financial decisions and reluctance to export could be dependent on the final agreement's ramifications for the wider global economy.
- In the heart of EU politics, negotiations are ongoing regarding the potential effects of the US-UK trade deal on their respective economies, with implications for exports, finance, business, and the general-news landscape, as well as exported deficits and political dynamics within the European Parliament.
