Trump touts ‘full’ US-UK trade pact after weeks of talks

‘The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,’ Trump wrote in a post.

President Donald Trump said the US has secured what he described as a comprehensive trade agreement with the UK, the culmination of weeks of talks between the two allies and marking the first of his promised deals with countries around the world.

The US President said in a post on his social media platform that Thursday would be an “exciting day” for the two nations, with the White House promising details in a press conference at 10 a.m. in Washington.

ADVERTISEMENT CONTINUE READING BELOW

“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,” Trump wrote in a second post. “Because of our long time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”

With polls showing  Americans souring on his economic stewardship, Thursday’s deal is a sign that Trump is seeking an off-ramp from his plan to raise US tariffs to their highest level in a century. The president signaled that “many other deals which, are in serious stages of negotiation,” would follow as he looks to topple barriers to US exports and calm market turmoil driven by the sweeping scope of his tariffs.

Hopes that a trade deal will lift the outlook for the UK economy briefly boosted the pound, but the gain fizzled out as investors waited for details. Stocks saw tentative gains while still lagging peers, and gilts outperformed European and US bonds ahead of the Bank of England monetary policy decision.

Despite Trump’s language, any agreement is likely to be limited. The UK-US deal has never been billed as a full-scale free trade agreement, which typically take years to negotiate. US talks with several nations have centered around, at best, a top-line deal on commitments and intentions that may leave many details traditionally included in comprehensive trade agreements to be negotiated later.

Nevertheless, that the UK is the first country to secure a deal with the US is a win for UK Prime Minister Keir Starmer, who’s likely to present it as a vindication of his diplomatic approach of refusing to overtly criticise Trump, holding regular phone conversations with the US president and promising him a second state visit to Britain. It comes just two days after the UK announced it had sealed a trade deal with India, Britain’s biggest such agreement since it left the European Union.

Whatever the terms when announced, the UK is still likely to be in a worse economic position with its biggest individual trading partner than before Trump’s tariff war — providing potential attack lines for Starmer’s domestic political opponents.

In intensive talks with their American counterparts, British envoys have focused on securing reductions in the most egregious tariffs — the 25% imposed on steel, aluminum and the automotive sector — with an expectation that Trump’s base tariffs of 10% on other products would remain.

ADVERTISEMENT: CONTINUE READING BELOW

With the Trump administration conducting an investigation into the pharmaceutical industry, Britain was also seeking to avoid the prospect of tariffs on drugs — a major export to the US. Trump’s more recent threat of tariffs on the film industry — another UK strength — added another sector for Britain to defend. An expansion of tariffs beyond goods is ominous for the British economy, which is dominated by its service sector.

In exchange for US tariff reductions, UK ministers had been considering lowering some agricultural tariffs and reducing an £800 million ($1.1 billion) digital services tax that largely falls on US tech companies. Closer trade on technology and cooperation on artificial intelligence was also in the cards.

Starmer is due to speak later on Thursday about the US deal. In an earlier speech to mark the 80th anniversary of World War II. he described the US as “indispensable” to Britain’s economic and national security and said: “Make no mistake, I will always act in our national interest for workers, business, and families to deliver security and renewal.”

Other nations with talks at high levels with the US include Japan, India and Israel. Trump surprised Japanese negotiators by personally joining in talks last month, while Vice President JD Vance traveled to India for discussions that included trade.

© 2025 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.