President Donald Trump is set to announce a major trade deal with the United Kingdom today at 10:00 a.m. ET in the Oval Office, according to a source familiar with the administration’s plans.
The announcement is seen as a potential easing of the intense global tariff war Trump has waged since his second term began, offering possible short-term relief for the U.S. and global economies.
What’s in the deal?
While Trump teased the announcement Wednesday night on Truth Social, he didn’t name the country involved, calling it simply:
“A MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”
Reports from the Financial Times suggest the UK deal could:
- Exempt U.S. tech firms from the UK’s 2% digital services tax
- See the U.S. ease or eliminate 25% tariffs on UK aluminum, steel, and auto exports
What’s next?
Although the administration has hinted at talks with other countries — including India, South Korea, and Japan — experts warn that true trade agreements typically take months or years to finalize.
Jacob Jensen, trade analyst at the American Action Forum, noted:
“There is a significant difference if these deals are official, written trade agreements rather than verbal commitments… One has long-term economic implications and the other can be ignored down the line.”
Trump has said he won’t extend the current 90-day pause on tariffs, set to expire in July, meaning if deals aren’t finalized quickly, tariffs could snap back into place.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are heading to Geneva this weekend for talks with Chinese officials. Trump has imposed a 145% tariff on Chinese goods, and China has retaliated with a 125% tariff on U.S. products.
When asked if he’d ease tariffs to bring China to the table, Trump was blunt:
“No.”
Economic warning signs
The U.S. economy contracted in Q1 for the first time in three years, largely due to businesses stockpiling ahead of Trump’s “Liberation Day” tariffs. Federal Reserve Chair Jerome Powell warned Wednesday that tariffs pose serious risks but added that ongoing trade talks could help avoid the worst outcomes.
Global economists at the IMF, OECD, and World Bank have all cautioned that Trump’s trade war could push the world economy into a sharp slowdown and possibly tip the U.S. into a recession this year.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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