Washington (AFP) – US President Donald Trump on Thursday announced a “full and comprehensive” trade agreement with Britain, which would be the first such deal since he launched his global tariffs blitz. Trump provided no details about the scope of the deal but said there would be many more to come after he hit US trading partners with sweeping levies on his April 2 “Liberation Day.”
But a more reserved tone from London suggested the deal might not be as comprehensive as claimed by Trump, who has boasted for weeks that countries were lining up to strike deals with Washington. The 78-year-old Republican called it a “very big and exciting day” and was due to speak further about the agreement at a news conference in the White House scheduled for 10:00 am (1400 GMT).
“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,” the president posted on his Truth Social platform. “Because of our long-time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”
Secretary of State Marco Rubio said it was an “important step towards fair and reciprocal trade with our partners around the world.”
The deal follows a charm offensive by British Prime Minister Keir Starmer, who came to the White House in February — armed with an invitation from King Charles III for a historic second state visit for Trump. Reports said the deal would lift Trump’s 25-percent tariffs on British steel and cars, but his baseline 10 percent tariffs would remain. In return, Britain could give relief from the UK’s digital services tax paid by US tech giants.
Sky News reported that London has agreed to concessions on food and agriculture imports with Washington. Starmer said he would speak about the trade agreement with the United States — the UK’s single largest country trading partner — later on Thursday. “Talks with the US have been ongoing, and you’ll hear more from me about that later today,” the PM told a London conference on defense. “But make no mistake, I will always act in our national interest.”
A UK government official likened the deal to a “general terms document” which will set out agreements but also lay out a framework where further discussions are needed. The deal was focused on specific sectors rather than being the fully-fledged free trade agreement sought by the UK following its 2020 departure from the European Union, the official said on condition of anonymity. As well as dealing with steel and car tariffs, it would lay out positions for discussions over possible future tariffs in the key pharmaceuticals sector. “There will be further negotiations to come,” the source added.
A US deal would be a fresh win for Starmer after Britain this week struck a free-trade agreement with India, its biggest such deal since leaving the EU. Trump described the British leader, who like the US president won power last year, as a tough negotiator following the latter’s visit to Washington in February. The president slapped 10 percent tariffs on imports from around the world in April, including Britain, but he temporarily froze higher duties on dozens of nations to allow for negotiations.
The film industry — a main UK export for the services sector — is also in Trump’s sights. London, however, has not yet retaliated against Trump’s tariffs. Reaching a post-Brexit agreement with the United States has been a priority for Britain. London had been keen to achieve some type of accord with Washington ahead of a EU-UK summit on May 19 to reset ties with the 27-nation bloc.
The EU is meanwhile struggling to reach its own trade deal with the United States. Brussels on Thursday proposed hitting US planes and cars with tariffs if talks fail.
© 2024 AFP
