A TRADE deal between the UK and US will be agreed to within just three weeks, an insider has revealed.
According to an insider, White House officials are eager to swiftly reach a deal with Britain as part of President Donald Trump’s strategy to distance China in the ongoing global tariff trade dispute.
The push for this agreement follows recent comments by US vice-president JD Vance, who alleviated concerns in financial markets by suggesting that Trump, given his strong connection with the UK, would likely come to a favorable arrangement with London.
Speaking to The Telegraph, a White House official expressed confidence that a deal could be finalized “soon,” potentially within the next “two weeks, or maybe three.”
Britain was hit by a flat 10 per cent tariff by the US President earlier this month as part of his “liberation day”, which saw him enforce trade barriers on countries around the world.
China has been hit with tariffs of 145 per cent by the White House, and has responded itself with a tax of 125 per cent on imports from the US.
The World Trade Organisation said this could see business between the two giants plunge by 90 per cent.
White House press secretary Karoline Leavitt said on Tuesday there were already 15 trade deals being negotiated, after more than 75 nations reached out to land deals before the 90-day pause on more aggressive tariffs expires.
After Trump revealed his varying tariffs for countries around the world, stock markets were sent into freefall and diplomatic crises ensued.
Following the devastating effects, the US president rolled back on his announcement, placing a blanket 10 per cent tariff on all imports globally for 90 days, except those from China.
While he has kept the large levy on the Asian country, he rolled back on placing it on all imports, sparing iPhones, laptops, and other electronics from the brutal tariffs.
In terms of an agreement with Britain, Trump officials have publicly and privately said the UK is in a good position for a quick deal as it imports more from the US than it exports.
The president had heavily targeted countries with tariffs which exported more to the US than they imported.
However, some officials have cautioned that Britain’s safety cannot be guaranteed, due to Trump’s unpredictable nature.
Steve Bannon, Trump’s former strategist, said a deal with the UK would be one of the fastest and easiest to negotiate.
He said: “You (Britain) don’t make anything anymore [that] we’re trying to bring back – that’s why Japan and Korea will be tough.”
“Sure you guys make automobiles but it is nothing in the grand scheme of things – they’re kind of bespoke Jaguars and Aston Martins.”
JD Vance also spoke to Unherd this week in a major interview which boosted hopes of a solid deal between the UK and the US.
Trump’s number two revealed the thinking of the US administration, saying: “There’s a real cultural affinity … I think there’s a good chance that, yes, we’ll come to a great agreement that’s in the best interest of both countries.”
While Britain avoided the 20 per cent surcharge placed on the EU, it is keen to reduce the 25 per cent levy placed on cars, aluminium and steel.
Vance also said that Trump’s affection for the royal family could swing a deal.
He said: “The president really loves the United Kingdom. He loved the Queen.
“He admires and loves the King. It is a very important relationship.”
Vance also revealed that the US was working “very hard” to secure an economic deal with the UK.
He said: “With the United Kingdom, we have a much more reciprocal relationship than we have with, say, Germany …
“While we love the Germans, they are heavily dependent on exporting to the United States but are pretty tough on a lot of American businesses that would like to export into Germany.”
Chancellor Rachel Reeves is expected to land in Washington next week with her finance ministers for the International Monetary Fund’s (IMF) spring meetings.
While government officials seem keen to strike a deal with their North American partners, one poll by YouGov on Wednesday found a whopping 57 per cent of Brits want to have the EU as their closest trading partner.
Just 16 per cent of the 5734 adults surveyed said they would want the US as their strongest economic ally.
BRITAIN PRESSURED TO LIMIT TIES WITH CHINA
A deal with Britain, however, could be placed on the back burner as the Trump administration attempts to build a trade bloc to take on the manufacturing might of China.
It has also been said that the UK could be forced to limit dealings with the Asian powerhouse to secure reductions in Donald Trump’s punishing tariffs.
The White House wants to stop the Communist state getting round trade barriers by shipping goods through other countries.
Moves by Trump’s team to prevent China swamping up to 70 trading partner nations with its products would also hit Beijing’s economy.
Britain is currently attempting to negotiate a trade deal to mitigate the damage from Trump’s ten per cent tariffs, as well as a painful 25 per cent levy on cars, steel, and aluminium.
However, MPs and campaigners warned against cosying up to China — citing the emergency legislation needed to save British Steel, owned by Chinese firm Jingye.
Tory MP Neil O’Brien said: “You would love to believe that the Government will learn the lesson. Sadly there is no sign of that.
“The UK and other democratic countries should be aiming to reduce dependence on a hostile authoritarian regime.”
Luke de Pulford, of the Inter-Parliamentary Alliance on China, added: “China has been able to undercut foreign industry partly through mass state-imposed forced labour.”
