Britain is set to sign a trade deal with the U.S., making it the first country to do so after the world’s largest economy announced stiff “reciprocal” tariffs against friends and foes alike in April.
The White House is due to hold a news conference at 10:00 a.m. ET (3 p.m. London time) on Thursday in the Oval Office.
In a post on Truth Social, U.S. President Donald Trump said Thursday, “The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.”
“Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”
A spokesperson for the office of U.K. Prime Minister Keir Starmer told CNBC: “The United States is an indispensable ally for both our economic and national security. Talks on a deal between our countries have been continuing at pace and the Prime Minister will update later today.”
The New York Times first reported that a U.K.-U.S. announcement would be made on Thursday.
Britain, which runs a trade deficit with the U.S., was spared the higher reciprocal tariffs when Trump announced his “liberation day” duties, although it was still hit with the baseline 10% levy. It is also subject to the U.S.’ 25% duties on steel, aluminum and vehicles, which early reports suggest may play a key role in the deal to be announced Thursday.
The U.K.’s central bank cut interest rates by a quarter percentage point on Thursday. The Bank of England said in a statement that global growth prospects had weakened as a result of tariff uncertainty and announcements, but added that negative impacts on U.K. growth and inflation were “likely to be smaller.”
The decision came after the U.S. Federal Reserve on Wednesday held rates steady, noting that risks to both higher unemployment and higher inflation have risen.
— CNBC’s Chloe Taylor, Holly Ellyatt and Erin Doherty contributed to this story.
