A Transatlantic trade deal is set to be unveiled today with hopes of relief from Donald Trump’s tariffs.
The US president heralded a ‘major trade deal’ in posts on social media, saying it will be ‘comprehensive’ and ‘cement’ ties with the UK.
He said he will make the ‘big and exciting’ announcement in the Oval Office at 3pm UK time – amid warning that the ‘devil will be in the detail’.
Downing Street was caught off guard during a day focused on VE Day tributes when it was announced that Keir Starmer would provide an ‘update’ on the discussions later.
The Prime Minister stated during a speech at the London Defence Conference earlier today, ‘Discussions with the US have been in progress, and I will provide further details on this later today.
‘Rest assured, I am committed to acting in the best interests of our nation to ensure the well-being of workers, businesses, and families, and to bring security and rejuvenation to our country.’
There have been signs that the teams are closing in on a package to reduce the impact of the president’s eye-watering 25 per cent levies on car and steel imports.
The UK is also hoping to head off the prospect of an assault on the pharma sector.
However, there are concerns about Sir Keir making concessions to the US on farming and taxing of tech giants.
It will be Mr Trump’s first trade deal since his so-called ‘Liberation Day’ trade assault on April 2. He has since delayed, reannounced and overhauled tariffs amid crashing stock markets and concerns over the sustainability of the US debt mountain.
The premiers raised the prospect of a Transatlantic trade deal when they met at the White House in February.
The premiers raised the prospect of a Transatlantic trade deal when they met at the White House in February
Mr Trump said it would be a ‘big, exciting day’ for America and Britain – pointing to the announcement in the Oval Office at 3pm UK time
The president said the agreement will be ‘comprehensive’ and ‘cement’ ties with the UK
Although British hopes of escaping the ‘baseline’ 10 per cent tariffs have dwindled, the package is likely to include quotas to ease the effects.
In return the UK is expected to make concessions on a new ‘digital sales tax’, as well as lowering tariffs on US cars and farming products.
The Government has ruled out lowering food standards to allow more US agricultural products into the country, or watering down the Online Safety Act, which some in the US regard as placing restrictions on freedom of speech.
The PM has been rushing to seal a pact with America before his big Brexit ‘reset’, due to be unveiled at a summit with the EU on May 19.
There are concerns that could enrage Mr Trump, who has claimed the bloc was created to ‘screw’ the US.
Mr Trump wrote on his Truth Social site last night: ‘Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!’
He added today: ‘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.
‘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!’
Sir Keir has repeatedly rejected suggestions that the UK will need to choose between partnerships with Europe or America, saying the national interest ‘demands that we work with both’.
A No10 spokeswoman said: ‘The Prime Minister will always act in Britain’s national interest – for workers, for business, for families.
‘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.’
Economists have warned that Mr Trump’s policies are set to spark a global slowdown and wreak havoc with Rachel Reeves’ attempts to revive growth.
Brexiteers pointed out that the UK was the first to secure a deal, after Barack Obama’s notorious warning that Britain would be at the ‘back of the queue’ if it left the EU.
The announcement comes just two days after the UK said it had agreed a trade deal with India, which Sir Keir hailed as a ‘landmark deal’.
Overall trade in goods between the US and UK is largely balanced, with £59.3billion exported to the US and £57.1billion imported
Commons Leader Lucy Powell insisted that food standards have been a ‘red line’ for the Government in the negotiations.
In the House this morning, Conservative MP Mark Pritchard asked for a debate on ‘the concerns of British farmers… chlorinated chicken, hormone-fed beef and, of course, antibiotics in pig farming’.
‘Can the minister assure the House, assure Shropshire farmers and British farmers that British agriculture is safe with this trade deal?’ he said.
Ms Powell replied: ‘These issues are still unfolding, but he’s absolutely right to praise the work of the Prime Minister and the Secretary of State for Business and Trade for the amazing work that they’ve done to get us to this point today, but he will be aware that the issues that he raises of food standards and agriculture have been red lines for this Government in those trade talks, and he will get the details later today.’
