A Transatlantic trade deal is set to be unveiled today with hopes of relief from Donald Trump’s tariffs.
The US president teased a ‘major trade deal’ with a ‘big, highly respected country’ in a post on social media overnight.
He declared that he will make the announcement in the Oval Office at 3pm UK time.
Downing Street – which seemed to be taken by surprise amid VE Day commemorations – said Keir Starmer will give an ‘update’ on the negotiations later.
There have been signs that the teams are closing in on a package to reduce the impact of the president’s eye-watering 25 per cent levies on car and steel imports.
The UK is also hoping to head off the prospect of an assault on the pharma sector.
It will be Mr Trump’s first trade deal since his so-called ‘Liberation Day’ trade assault on April 2. He has since delayed, reannounced and overhauled tariffs amid crashing stock markets and concerns over the sustainability of the US debt mountain.
The premiers raised the prospect of a Transatlantic trade deal when they met at the White House in February.
The premiers raised the prospect of a Transatlantic trade deal when they met at the White House in February
Although British hopes of escaping the ‘baseline’ 10 per cent tariffs have dwindled, the package is likely to include quotas to ease the effects.
In return the UK is expected to make concessions on a new ‘digital sales tax’, as well as lowering tariffs on US cars and farming products.
The Government has ruled out lowering food standards to allow more US agricultural products into the country, or watering down the Online Safety Act, which some in the US regard as placing restrictions on freedom of speech.
The PM has been rushing to seal a pact with America before his big Brexit ‘reset’, due to be unveiled at a summit with the EU on May 19.
There are concerns that could enrage Mr Trump, who has claimed the bloc was created to ‘screw’ the US.
Mr Trump wrote on his Truth Social site: ‘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!!!’
Sir Keir has repeatedly rejected suggestions that the UK will need to choose between partnerships with Europe or America, saying the national interest ‘demands that we work with both’.
A No10 spokeswoman said: ‘The Prime Minister will always act in Britain’s national interest – for workers, for business, for families.
‘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.’
Economists have warned that Mr Trump’s policies are set to spark a global slowdown and wreak havoc with Rachel Reeves’ attempts to revive growth.
Brexiteers pointed out that the UK was the first to secure a deal, after Barack Obama’s notorious warning that Britain would be at the ‘back of the queue’ if it left the EU.
The announcement comes just two days after the UK said it had agreed a trade deal with India, which Sir Keir hailed as a ‘landmark deal’.
Overall trade in goods between the US and UK is largely balanced, with £59.3billion exported to the US and £57.1billion imported
