US-UK trade deal live: Trump set to announce tariffs cut as he teases deal with ‘big, respected country’ after touting ‘big announcement’

Quotas that would exempt a certain number of UK exports from the full impact of 25 per cent tariffs on the British car and steel industry could be included in the deal, reports earlier this week suggested, The Independent’s Whitehall editor Kate Devlin writes.

In exchange, the UK could give concessions on Britain’s digital services tax, which hits major US tech firms including Meta and Amazon.

The 2 per cent levy, which was introduced in 2020, raises about £800m a year for the UK.

Other aspects that could make up part of the agreement include concessions on tariffs on US cars, as well as a reduction of levies on American agricultural products.

British officials hope a US deal will go some way to offsetting the effects of the tariffs US president Donald Trump has announced and which have sent shockwaves through the global economy, The Independent’s Whitehall editor Kate Devlin writes.

Earlier this year, Mr Trump announced a 25 per tariff on all cars imported to the US, a measure hitting British luxury car makers such as Rolls-Royce and Aston Martin.

This levy was on top of a series of tariffs which came into effect on 2 April, including a general 10 per cent tariff on UK products.

UK-US trade talks have been “continuing at pace” with an update expected later today, Downing Street said.

It comes after US president Donald Trump announced a “major trade deal” with a “highly respected country”.

More details on the agreement are expected at around 3pm after a press conference at the White House, Mr Trump added.

“The Prime Minister will always act in Britain’s national interest – for workers, for business, for families,” Sir Keir Starmer’s spokesperson said.

“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.”

Striking a US-UK trade deal so swiftly would be a could for Keir Starmer, depending on its detail.

There had been a suggestion that the UK was further down the queue, and would have to wait until agreements with other countries were negotiated first.

If, as expected, a deal is announced later today it will come hot on the heels on a free trade agreement with India unveiled earlier this week.

British officials hope a US deal will go some way to offsetting the effects of the tariffs Donald Trump has announced and which have sent shockwaves through the global economy.

Shortly after report of an agreement emerged the value of the pound rose by 0.4 per cent against the US dollar.

Donald Trump is expected to announce that his administration has reached a trade deal with the UK.

Trump teased an upcoming announcement of what he said was a “major trade deal” with a “big, and highly respected country” in a post on Truth Social but did not specify which country it was.

People familiar with negotiations told The New York Times that a deal had been struck with the UK after officials were in Washington, DC for negotiations.

“Big News Conference tomorrow at 10:00 A.M.,” Trump wrote late Wednesday. “The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”