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WASHINTON: The United States and Britain are expected to announce a trade deal on Thursday that will lower the burden of President Donald Trump’s sweeping tariffs and potentially deliver a political victory for Prime Minister Keir Starmer. Trump said on Wednesday that he would announce a “major trade deal” with a “big, highly respected country,” which he did not identify. A US official confirmed the country was Britain, speaking on condition of anonymity to discuss talks before an announcement. Starmer’s office said the prime minister would give an “update” about US trade talks later in the day. “As you know, talks with the US have been ongoing and you’ll hear more from me about that later today,” Starmer said at a defence conference in London. The president placed a 10 per cent tax on imports from Britain, as well as 25 per cent tariffs on autos, steel and aluminum on the premise that doing so would foster more factory jobs domestically. A major goal of British negotiators has been to reduce or lift the US import tax on UK cars and steel. The prospects of a trade deal with the United Kingdom are symbolically important, and a relief for British exporters. But an agreement would do little to address Trump’s core concern about persistent trade deficits that prompted him to impose import taxes on countries around the world. The US ran a USD 11.9 billion trade surplus in goods with the UK last year, according to the Census Bureau. The USD 68 billion in goods that the US imported from the UK last year accounted for just 2 per cent of all goods imported into the country. Trump has shown a desire to strike a trade agreement with the UK since it voted in 2016 to leave the European Union. As recently as Tuesday, Trump showed no awareness of the possible terms of the deal when asked about its possibility. “They’re offering us concessions?” Trump told reporters. “I hope so… They do want to make a deal very badly.” Trump has previously said that his leverage in talks would be US consumers, but he also appeared to suggest that the UK would also start buying more American-made goods. “I think that the United Kingdom, like every other country, they want to, they want to be, go shopping in the United States of America.”
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