US and UK Set to Announce Deal to Lower Tariffs, Sources Say

The US and the UK are expected to announce an agreement to reduce tariffs this Thursday, signaling a positive shift in trade relations between the two nations. The UK has been actively seeking a tariff reduction deal since President Donald Trump imposed sweeping levies on most countries last month.

Trump hinted at the upcoming announcement on social media Wednesday evening, saying, "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!!!"

Earlier this year, Trump imposed significant tariffs on several trading partners, followed by a 90-day pause on the levies in early April. Despite this, a 10% global tariff remains in place, including for the UK, although the UK was not subjected to higher "reciprocal" tariffs. Additionally, the UK faces a 25% US import tax on steel, aluminum, and vehicles.

Trump to hold news conference at 10:00 AM in Washington, D.C.

Reports indicate that the US is also close to finalizing trade deals with India and Israel, while talks continue with other nations like Japan, South Korea, and Vietnam. Trump’s administration has expressed a desire to renegotiate global trade agreements, aiming to reshape international trade dynamics.

In parallel, the US and China have agreed to initiate high-level talks starting May 9 in Switzerland to address their ongoing trade tensions. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will represent Washington, while Chinese Vice Premier He Lifeng will attend the discussions.

In other trade news, the UK and India finalized a separate trade deal this week, which is expected to boost UK exports of whisky, cars, and other goods to India, while lowering taxes on Indian clothing and footwear exports.