The United States and the United Kingdom are expected to announce a trade agreement on Thursday, which should reduce prices on goods exported by the two savings.
President Donald Trump said on Wednesday evening that a big trade agreement was imminent.
“Big press conference tomorrow morning at 10:00 am, the Oval office, concerning an important trade agreement with representatives of a large and very respected country. The first of many !!!” The president posted on his social account Truth.
The New York Times first indicated that the agreement would be the United Kingdom.
A Downing Street spokesperson told Business Insider that the talks between the two countries had “continued at the rate” and that Prime Minister Keir Starmer would provide an update later on Thursday.
“The United States is an essential ally for our economic and national security,” said the spokesperson.
The British government has requested an agreement to reduce prices because Trump’s “release day” prices imposed a 10% levy on British goods and higher rates of 25% on steel, aluminum and cars.
The details of the agreement were not clear, but reducing the prices on cars – the main export of the United Kingdom to the United States, worth almost $ 12 billion – was a key priority for Starmer.
In return, the United Kingdom can reduce its 2%digital sales tax, which was introduced in 2020 and applies to the income of technology giants such as Amazon and Meta.
Many world leaders have sought to negotiate with the Trump administration to reduce the impact of radical prices announced on April 2.
Thursday’s agreement would make the United Kingdom the first country to officially facilitate economic tensions with Trump.
President Donald Trump met new Canadian Prime Minister Mark Carney this week. Anna Moneymaker / Getty Images
Trump’s statement that Thursday’s trade agreement is “first of many” suggests that the president could be ready to soften his approach to global trade relations.
Last week, the president said that he had “potential” trade agreements aligned with India, South Korea and Japan.
Trump’s approval rating has taken a hit, and recent surveys show that Americans have also embittered on its management of the economy.
However, uncertainty always permeates Trump’s economic maneuvers. At an oval office meeting with the new Canadian Prime Minister Mark Carney this week, Trump said he didn’t need to conclude trade agreements.
“We do not have to sign offers, they must sign agreements with us. They want an element of our market-we do not want an element of their market,” he said.
Other countries like China have retaliated rather than negotiating. The United States now has up to 245% prices on imports China, a manufacturing center. Beijing retaliated with 125% tariffs on American products.
For the United Kingdom, an agreement with the United States would be the second important victory after the country obtained a historic trade agreement with India earlier this week.
The negotiation of international commercial transactions has become a key priority for the United Kingdom since its 2016 vote to leave the European Union made it necessary to conclude new agreements.
The White House did not immediately respond to a request for comments.
businessinsider
