President Donald Trump is expected to announce on Thursday a long -awaited commercial agreement with the United Kingdom, which marks a possible advance in transatlantic relations in the midst of the growing global commercial tensions caused by the scarf tariff regime.
The president mocked the announcement in a publication on Truth Social, promising an “important commercial agreement” at a press conference scheduled for 10 am in the Oval office. Although Trump did not appoint the country, the New York Times has reported that the agreement will be with the United Kingdom, a claim that the United Kingdom officials have echoed.
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According to government sources in the United Kingdom, the agreement is expected to include lower tariff quotas in steel and cars in the United Kingdom, with reciprocal concessions of Great Britain on digital taxes and reductions in rates in US cars and agricultural products.
The announcement arrives at a key political moment for Prime Minister Keir Starmer, who hopes to seal a commercial pact with the United States before presenting his Restart Plan after Brexit at an EU summit on May 19.
The Financial Times reports that the draft would be a second safe installments for car and steel exports in the United Kingdom, as well as reductions in baseline rates of 10% imposed by the United States earlier this year. In return, Great Britain can relieve its digital services tax and make modest concessions on agriculture and vehicles made in the United States.
Since launched its “Liberation Day” tariffs on April 2, Trump has implemented or reviewed import tariffs ranging from 10% to 145%, which affects the category of almost imported products. While the United Kingdom was saved from additional tariffs, in large part because it matters more from the United States of what it exports there, many feared that it would still be caught in crossfire.
Trump has temporarily suspended his toughest rates for 90 days, including levies on commercial partners such as Japan, South Korea and the EU. But Britain is running to ensure a voice agreement before that grace period ends.
“We have possible commercial agreements with India, South Korea and Japan,” Trump said earlier this week. “We are reviewing them now.”
Despite the progress, Prime Minister Starmer has ruled out the key demands of the United States, including lower food security standards and changes in online security legislation, which some US legislators see as restrictions on freedom of expression.
This rejection can mean that the United Kingdom remains subject to the 10% reference rate that receives a complete exemption, but safe fees for exports could provide substantial relief to British manufacturers.
Trump’s announcement is presented to the high-risk US-China commercial conversations scheduled for Saturday, where investors expect the two superpowers to begin to resolve their economic dispute.
Trump has suggested tariff exemptions for child care products, such as car seats and diapers, in the middle of the growing pressure on firing costs for parents.
“I want to make it pleasant and simple,” Trump said. “I am not looking to have so many exemptions that no one knows what we are doing … but I will take a look.”
With rates that hit consumers and companies that face the global tension of the supply chain, the United Kingdom agreement can offer a rare moment of clarity and relief, in which otherwise it has a turbulent chapter in global trade.
While the details of the agreement remain secret, the financial markets are expected to respond quickly once the formal announcement is made. Investors are closely observing the signals on how Washington plans to deliver other pending commercial negotiations, and if this agreement could establish a precedent for other countries that seek to navigate the increasingly protectionist agenda of Trump.
For now, the United Kingdom seems to be ready to be the first in the line for a commercial agreement, offering a strategic victory for both sides and a potential impulse for a beshed British economy that seeks to reaffirm its global commercial credentials after Brexit.
Paul Jones
Harvard Alumni and former New York Times journalist. Business Matters editor for about 15 years, the largest commercial magazine of the UKs. I am also head of the Automotive Capital Division Business Media who works for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.
