President Donald Trump said the US had struck a trade deal with the UK in a Truth Social post on Thursday morning.
He said the “full and comprehensive” agreement would “cement the relationship” between the US and Britain for many years.
“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!” Trump added.
He teased the announcement on Wednesday night, posting that a “major trade deal” with a “big, and highly respected, country” was imminent.
A news conference was scheduled for 10 a.m. ET in the Oval Office.
The New York Times first reported that the deal would be with the UK.
A Downing Street spokeswoman told Business Insider that talks between the two countries had been “continuing at pace” and the Prime Minister, Keir Starmer, would provide an update later on Thursday.
“The United States is an indispensable ally for both our economic and national security,” the spokeswoman said.
The UK government has been seeking an agreement to lower tariffs since Trump’s “Liberation Day” tariffs imposed a 10% levy on UK goods and higher rates of 25% on steel, aluminium, and cars.
The details of the deal were not clear, but lessening tariffs on cars — the UK’s top export to the US, worth almost $12 billion —has been a key priority for Starmer.
In return, the UK may reduce its 2% digital sales tax, which was introduced in 2020 and applies to the revenues of tech giants such as Amazon and Meta.
Many global leaders have been seeking to negotiate with the Trump administration to lessen the impact of the sweeping tariffs announced on April 2.
The UK will become the first country to formally ease economic tensions with Trump.
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Trump’s declaration that Thursday’s deal would be the “first of many” suggests that he may be ready to soften his approach to global trade relations.
Last week, the president said he had “potential” trade deals lined up with India, South Korea, and Japan.
Trump’s approval rating has taken a hit, and recent polling shows that Americans have also soured on his handling of the economy.
However, uncertainty still pervades Trump’s economic maneuvers. During an Oval Office meeting with new Canadian Prime Minister Mark Carney this week, Trump said he didn’t need to make trade agreements.
“We don’t have to sign deals, they have to sign deals with us. They want a piece of our market — we don’t want a piece of their market,” he said.
Other countries such as China have retaliated rather than negotiate. The US now has tariffs of up to 245% on imports from China, a manufacturing hub. Beijing has retaliated with 125% tariffs on US goods.
For the UK, a deal with the US is the second significant win after securing a landmark trade deal with India earlier this week.
Negotiating international trade deals has become a key priority for the UK since its 2016 vote to leave the European Union made it necessary to strike new agreements.
The White House did not immediately respond to a request for comment.
