WORLDWIDE:
US President Donald Trump has hinted at the announcement of a major trade deal with the United Kingdom, in what could mark the first concrete step towards easing tariff tensions that have rattled global markets.
“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,” Trump wrote on Truth Social late Wednesday.
Photo: Truth Social
Though he did not name the country, a source familiar with the matter confirmed it is the United Kingdom.
If confirmed, the deal would represent a rare breakthrough after months of global uncertainty caused by Trump’s tariff-heavy trade policies.
The Financial Times reported that the deal could see the UK exempted from certain non-tariff trade barriers, such as its 2% digital services tax on US tech firms. In exchange, the US may ease 25% tariffs on British aluminium, steel and autos.
Peter Navarro, Trump’s top trade adviser, told that the UK was among the most likely candidates for a first agreement, alongside India, South Korea and Japan. “We’ve got a little twist in the India story,” Navarro said, hinting at delays there, “but there will be deals.”
Despite the promise, trade analysts remain sceptical. Jacob Jensen, a trade policy expert at the American Action Forum, said any agreement announced Thursday is likely to be a memorandum of understanding, rather than a full treaty.
“Deals that carry real economic weight typically take months, even years, to finalise,” he said.
Provisional terms are likely to offer short-term relief from some tariffs but fall short of a comprehensive trade pact. The Trump administration has said it is in talks with more than a dozen nations but has yet to sign any binding agreements.
In recent weeks, Trump has signalled willingness to reimpose tariffs if talks falter. “There won’t be another extension,” he warned last month, referring to the 90-day tariff pause introduced in early April.
Meanwhile, signs of diplomatic thaw have emerged on other fronts. Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are expected to meet Chinese officials in Geneva this week.
While not expected to yield a major breakthrough, the meetings could lower tensions.
Washington currently imposes tariffs of at least 145% on most Chinese goods, while China maintains 125% duties on American exports.
Trump has so far refused to lower tariffs as a precondition for talks with Beijing, potentially stalling negotiations.
The global economic toll has been steep. The US economy contracted in Q1 2025 — its first quarterly decline in three years — as businesses stocked up in anticipation of Trump’s “Liberation Day” tariffs.
Economists at the IMF, OECD, and World Bank have all warned that prolonged tariff wars could drag down global growth and reignite inflation.
Despite securing the USMCA trade deal during his previous term, Trump later reversed course, reimposing tariffs on Mexican and Canadian goods.
Analysts warn that similar reversals could follow any new deal, adding to global uncertainty.
Still, any sign of easing trade restrictions may bring relief to businesses and consumers facing rising costs. As talks continue, Thursday’s announcement is expected to be closely watched by markets and allies alike.
