President Donald Trump has teased a significant trade announcement, which is expected to be a deal with the United Kingdom. This could potentially bring relief from the high tariffs that have been a concern for both the US and the global economy.
Trump shared the news on Truth Social, stating, “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!!!”
In an early morning post, Trump confirmed that the UK would be the country involved in the deal. “This should be a very big and exciting day for the United States of America and the United Kingdom,” he wrote.
The UK trade deal could be a significant step, possibly eliminating non-tariff barriers like the 2% digital services tax on US tech companies. In exchange, the US may reduce or remove tariffs on UK steel, aluminum, and automobiles, according to reports from the Financial Times.
Trump’s administration has suggested ongoing negotiations with countries like India, South Korea, and Japan. However, the deal with the UK might be the first to come to fruition, according to Peter Navarro, Trump’s top trade adviser.
Deal or Not?
Despite the excitement, the so-called “deal” may not be as significant as it appears. Trade deals typically take years to finalize and involve complex discussions. It is more likely that Thursday’s announcement will be a Memorandum of Understanding (MoU), which could result in reduced tariffs in the short term but may not lead to substantial economic changes right away.
Trump’s approach has also been marked by uncertainty. Though he has suggested that he’s negotiating with multiple countries, he has emphasized that he’s not in a rush to finalize anything, stating that the high tariffs are meant to balance trade and protect American interests.
Signs of De-escalation
The UK announcement follows other signals that Trump may be open to trade negotiations that reduce some of the high tariffs, particularly with China. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet with Chinese counterparts in Geneva. While Trump has refused to lower tariffs as a precondition for talks with China, the ongoing discussions could be a step toward de-escalation.
Economists remain cautious, as many predict that the ongoing trade war could lead to a global economic slowdown. Trump’s tariffs have already had a negative impact on the U.S. economy, with the first quarter of the year showing a contraction.