The US and UK are poised to announce the first major trade deal made since Donald Trump’s sweeping “Liberation Day” tariffs were introduced last month.
Trump hailed the deal as a “full and comprehensive” agreement, saying it was a “great honour to have the United Kingdom as our first announcement”.
“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,” he said.
“Because of our long time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement.
The president is set to announce the deal at the White House at about 3pm UK time (10am EST), with British prime minister Keir Starmer expected to provide an update around the same time.
Sir Keir has made a trade deal with the US a key priority, hoping it can reduce the impact of sweeping tariffs imposed by Mr Trump last month.
Key points
- Trump hails 'big and exciting day' for US and UK
- 'Full and comprehensive' trade deal expected, says Trump
- Bank of England chief welcomes trade deal
- Trade talks continuing at pace, says Downing Street
- UK to 'concede on food and agriculture imports'
Recap: What are we expecting later today?
13:43
,
Alexander Butler
Donald Trump announced a “full and comprehensive” trade agreement after teasing a “big and exciting” day with the UK earlier on Thursday.
He is expected to provide detail of the deal at around 3pm from the White House, with British prime minister Keir Starmer set to do the same at a similar time.
Downing Street also said UK-US trade talks have been “continuing at pace” when asked about Mr Trump’s comments.
Although the details are unclear, it is expected that Trump could remove tariffs that were slapped on UK goods in April.
UK-US trade deal: what don't we know?
13:33
,
Archie Mitchell
Industries who will be watching Mr Trump’s Oval Office announcement closely on Thursday include the film and TV industry and pharmaceutical industry.
Mr Trump has threatened to levy 100 per cent tariffs on films made outside America, which the PM has been warned would devastate film and TV production in the UK.
British officials have been locked in talks with US counterparts since Mr Trump outlined the plans, with a view to exempting Britain from the levies.
Officials have also been desperately trying to exempt British firms from a fresh threatened 25 per cent tariff on pharmaceuticals produced abroad.
The measure would have a huge impact on UK giants GlaxoSmithKline and AstraZeneca, and negotiators are racing to find a carve out.
BofE governor says US-UK trade deal will 'reduce uncertainty'
13:05
,
Holly Evans
Bank of England governor Andrew Bailey welcomed the expected announcement of a UK-US trade deal later on Thursday afternoon.
He said: “We haven’t been briefed, but we do have news to suggest that there will be an agreement and we welcome this news. It will help to reduce uncertainty.
“The UK is, though, a very open economy and is affected by the tariffs affecting other economies.
“I say that because I hope the UK agreement, if it is the case this afternoon, is the first of many.
“It is excellent that the UK is leading the way and I do congratulate all those involved.”
What could a UK-US trade deal include - and what does it mean for tariffs?
12:47
,
Holly Evans
Donald Trump is poised to unveil a “major trade deal” with the UK on Thursday, the culmination of Sir Keir Starmer’s months-long charm offensive towards the US president.
A month after his so-called Liberation Day tariffs began to bite, Britain is desperate for a carve out from the 25 per cent levies on its steel and car industries.
The deal will be a major boost for the prime minister, coming hot on the heels of a trade agreement between the UK and India this week.
Read the full analysis from political correspondent Archie Mitchell here:
FTSE 100 holds onto gains as pound strengthens ahead of trade announcement
12:33
,
Holly Evans
London's FTSE 100 Index held onto gains following the rate cut decision while the pound strengthened slightly just hours before a UK-US trade announcement.
The FTSE 100 stood 30 points higher at 8589.3, up 0.4 per cent, after rates were cut to 4.25 per cent from 4.5 per cent.
Sterling edged 0.3 per cent higher to 1.3331 US dollars and was 0.2 per cent up at 1.1770 euros.
At midday, the Bank of England cut UK interest rates to 4.25 per cent, following a split vote among policymakers.
The Bank’s nine-person Monetary Policy Committee (MPC) voted by a majority of five-four to reduce rates by 0.25 percentage points, bringing it down to the lowest level since May 2023.
Lowering food standards remain 'red line' for any trade deal
12:25
,
Holly Evans
Downing Street insisted that lowering food standards remained a “red line” for any US trade deal.
The Prime Minister’s official spokesman said: “We have always been clear on our red line when it comes to food standards.
“We are not going to lower British food standards. That’s something set out in the manifesto.”
No10 refuse to comment on Trump's comments on deal
12:17
,
Holly Evans
Downing Street did not comment on Donald Trump’s claim that the UK had agreed a “full and comprehensive” trade deal with the US.
Asked whether this was the case, the Prime Minister’s official spokesman said: “You’ve got his words and we’ve always been clear that we want to do a deal that’s in the British national interest, and support a substantial UK-US trading relationship.
“Those talks are continuing and we look forward to providing an update later today, when you will have the PM’s words to describe it.”
How Keir Starmer succeeded on US trade deal where four other prime ministers failed
12:05
,
Alexander Butler
Theresa May, Boris Johnson, Liz Truss and Rishi Sunak all promised - but failed to deliver - a post-Brexit trade deal with the US.
And, less than a year after entering Downing Street, Sir Keir Starmer has got the job done. Or has he?
The prime minister has secured what Donald Trump is calling a “major trade deal” with the US president saying it would be a “big and exciting day” for the US and UK - which he praised as a “highly respected country”.
Read the full story here:
Liz Truss 'pumped' for Trump's announcement
11:55
Former British prime minister Liz Truss said she was “pumped” for the UK-US trade agreement.
Ms Truss replied to US president Donald Trump’s statement on social media with the word “pumped” alongside the British and American flag.
Pumped pic.twitter.com/E96edmgPOF
— Liz Truss (@trussliz) May 8, 2025
Who will benefit most from a new UK-US trade deal?
11:45
,
Alexander Butler
Sir Keir Starmer and Donald Trump are on the brink of announcing a new trade deal after nearly five years of negotiations.
The previous government began discussions for a free trade agreement in May 2020 with then-president Joe Biden’s administration.
Now, Mr Trump has said "major trade deal" will be announced with a "highly respected country" on Thursday, widely believed to be a reference to the UK.
Read the full story here:
Food standards are a red line, says Commons leader Lucy Powell
11:30
,
Alexander Butler
Commons Leader Lucy Powell has said food standards are a “red line” for the Government in trade negotiations with the US.
Conservative MP for The Wrekin Mark Pritchard said: “Can I welcome the UK-US trade deal, and congratulate the Prime Minister on that deal.
“It’s very much in the national interest, although, of course, the devil is in the detail.
“But could we have a debate on the concerns of British farmers around that trade deal – chlorinated chicken, hormone-fed beef and, of course, antibiotics in pig farming. So can the minister assure the House, assure Shropshire farmers and British farmers that British agriculture is safe with this trade deal?”
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.”
'Full and comprehensive' UK-US trade agreement to be announced, Trump says
11:20
,
Alexander Butler
A “full and comprehensive” trade agreement between the UK and US is set to be announced today, US president Donald Trump said.
“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,” he said.
“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!”
MPs told to expect statement on UK-US trade deal today
11:08
,
Millie Cooke
MPs have been told to expect a statement in the Commons on trade between the UK and the US this afternoon.
Commons speaker Sir Lindsay Hoyle told the House: “The government has indicated that there will be a statement this afternoon on US-UK trade.
“The timing of that statement is yet to be established, but it will appear on the enunciator once it’s been confirmed.”
It is likely to come after Donald Trump holds a press conference in the US at 3pm UK time.
Trump hails 'big and exciting day' for US and UK
11:00
,
Alexander Butler
US president Donald Trump has hailed a “big and exciting day” for the US and UK as a trade deal is set to be announced.
“This should be a very big and exciting day for the United States of America and the United Kingdom,” Mr Trump said.
Downing Street said UK-US trade talks have been “continuing at pace” when asked about Mr Trump’s comments.
UK-US trade deal: what don't we know?
10:50
,
Alexander Butler
Industries who will be watching Mr Trump’s Oval Office announcement closely on Thursday include the film and TV industry and pharmaceutical industry.
Mr Trump has threatened to levy 100 per cent tariffs on films made outside America, which the PM has been warned would devastate film and TV production in the UK.
British officials have been locked in talks with US counterparts since Mr Trump outlined the plans, with a view to exempting Britain from the levies.
Officials have also been desperately trying to exempt British firms from a fresh threatened 25 per cent tariff on pharmaceuticals produced abroad.
The measure would have a huge impact on UK giants GlaxoSmithKline and AstraZeneca, and negotiators are racing to find a carve out.
What will the UK get as part of trade deal?
10:35
,
Archie Mitchell
The UK is hoping for an exemption from Mr Trump’s 25 per cent levies on steel, aluminium and cars.
Exporters have been lobbying ministers hard over the impact of the tariffs, which forced Jaguar Land Rover to suspend exports to the US last month.
Britain’s beleaguered steel industry has also warned the US president’s tariffs pose further challenges for the sector.
“They couldn’t come at a worse time,” Gareth Stace, director general of the UK Steel trade association said when they came into force.
Around 5 per cent of UK steel exports and 6 per cent of aluminium exports go to the US, according to the government.
While Britain hopes for an exemption from the higher 25 per cent tariffs, the trade deal is unlikely to see Mr Trump’s baseline 10 per cent tax on all imports lifted for the UK.
UK to concede on food and agriculture imports, say reports
10:20
,
Alexander Butler
The UK is set to make concessions on US food and agriculture exports to help ease tariffs on British carmakers, according to Sky News.
Previously, the UK reportedly offered to lower tariffs on American chicken, beef and other meats, in a move which could further inflame tensions between Labour and farmers.
Markets climb ahead of trade deal announcement
10:14
,
Millie Cooke
The FTSE 100 climbed on Thursday after Donald Trump indicated progress towards a trade deal with the UK – in what would be the first trade deal signed since he unveiled sweeping global tariffs and spooked economies across the world.
The UK’s stock market rose by 0.2 per cent as Downing Street confirmed Sir Keir Starmer would make an announcement later today.
Meanwhile, the pan-European STOXX 600 index was up 0.3 per cent this morning, while other regional indexes across Europe were also trading in positive territory, except for Spain, which fell 0.4 per cent.
Nearly one fifth of UK businesses bracing for Trump tariffs impact, ONS says
09:59
,
Alexander Butler
Nearly one fifth of UK businesses expect to be hit by US tariffs next month, according to the Office for National Statistics.
The ONS said 17 per cent of UK businesses are bracing for the impact of Mr Trump’s sweeping 10 per cent levy on UK goods exports introduced in April.
The most reported expected impacts were reduced demand and having to pass on additional costs to customers, both at 7 per cent.
UK-US trade deal is 'damage limitation' says economics expert
09:50
,
Alexander Butler
Any “deal” with the US is likely to be damage limitation rather than an economic boost, says King’s College London economics professor Jonathan Portes.
“That is, it is likely to limit the Trump tariffs, but our exporters will probably still be facing higher tariffs overall than they were last year,” he told The Independent.
“This will clearly be a relief to companies and the government deserves credit, but Trump’s policies overall remain a huge downside to the global economy and hence to the UK.
“The India deal, by contrast, is a real deal and a genuine achievement, not just a damage limitation exercise, and over the longer term could deliver very substantial benefits to the UK.”
I will always act in UK's national interest, says Starmer
09:40
,
Alexander Butler
Sir Keir Starmer said he would “always act in our national interest” and “deliver security and renewal for our country” as he discussed an impending announcement on trade talks with the US.
In a speech at the London Defence Conference on Thursday, the Prime Minister said: “As you know, talks with the US have been ongoing and you'll hear more from me about that later today.
“But make no mistake, I will always act in our national interest, for workers, businesses and families, to deliver security and renewal for our country.”
UK-US trade deal: what don't we know?
09:30
,
Archie Mitchell
Industries who will be watching Mr Trump’s Oval Office announcement closely on Thursday include the film and TV industry and pharmaceutical industry.
Mr Trump has threatened to levy 100 per cent tariffs on films made outside America, which the PM has been warned would devastate film and TV production in the UK.
British officials have been locked in talks with US counterparts since Mr Trump outlined the plans, with a view to exempting Britain from the levies.
Officials have also been desperately trying to exempt British firms from a fresh threatened 25 per cent tariff on pharmaceuticals produced abroad.
The measure would have a huge impact on UK giants GlaxoSmithKline and AstraZeneca, and negotiators are racing to find a carve out.
What could Britain give up?
09:20
,
Archie Mitchell
One of the biggest goals of US negotiators has been to win concessions on Britain’s digital services tax (DST), paid by overseas search engines and social media sites on revenues from the UK.
It would be a boost to major American firms such as Amazon, Facebook owner Meta and Google owner Alphabet.
One mooted change would be to lower the headline rate paid by the US tech giants, while at the same time applying it to companies from other countries to make up the shortfall.
It would mean no tax income would be lost from the levy overall, with the DST currently raising £800m a year.
The government has also reportedly offered to lower tariffs on American chicken, beef and other meats, in a move which could further inflame tensions between Labour and farmers.
What will the UK get as part of trade deal?
09:10
,
Archie Mitchell
The UK is hoping for an exemption from Mr Trump’s 25 per cent levies on steel, aluminium and cars.
Exporters have been lobbying ministers hard over the impact of the tariffs, which forced Jaguar Land Rover to suspend exports to the US last month.
Britain’s beleaguered steel industry has also warned the US president’s tariffs pose further challenges for the sector.
“They couldn’t come at a worse time,” Gareth Stace, director general of the UK Steel trade association said when they came into force.
Around 5 per cent of UK steel exports and 6 per cent of aluminium exports go to the US, according to the government.
While Britain hopes for an exemption from the higher 25 per cent tariffs, the trade deal is unlikely to see Mr Trump’s baseline 10 per cent tax on all imports lifted for the UK.
MPs must be given vote on trade deal, say Lib Dems
09:08
,
Alexander Butler
The Liberal Democrats called for MPs to be given a vote on any trade deal with the US so the agreement could be “properly scrutinised”.
Daisy Cooper, the party’s deputy leader and Treasury spokesperson, said: “A good trade deal with the US could bring huge benefits, but Liberal Democrats are deeply concerned that it may include measures that threaten our NHS, undermine our farmers or give tax cuts to US tech billionaires.
“If the Government is confident the agreement it has negotiated with Trump is in Britain’s national interest, it should not be afraid to bring it before MPs.”
Recap: What is expected later today?
09:03
,
Alexander Butler
US president Donald Trump announced a “major trade deal” with a “highly respected country” earlier today.
Although it has not been confirmed, American media, including the New York Times, has reported that the deal is with the UK, citing people familiar with the plans.
Downing Street also said UK-US trade talks have been “continuing at pace” when asked about Mr Trump’s comments.
Mr Trump is set to announce the deal at the White House at about 3pm UK time, with Sir Keir Starmer expected to provide an update later today.
Analysis: Starmer's charm offensive has paid of
08:46
,
Archie Mitchell
Sir Keir Starmer has faced criticism from all quarters for his approach to Donald Trump. Right-wingers want him to go further in tying himself to the US president's administration, left-wingers want him to condemn Mr Trump and launch into a trade war with the Americans.
But the prime minister's deferential approach appears to have won him bragging rights as the first world leader to win a carve out from Mr Trump's Liberation Day tariffs.
It is possible Sir Keir simply had more of an imperative to get a deal over the line, with Britain fending for itself outside the safety of the EU.
But it appears the PM has played the US president perfectly, leaning on his love of the Royal family, pomp and pageantry.He hand-delivered an invite for an unprecedented second official state visit to Mr Trump in the White House. It appears the flattery has paid off.
Watch: Trump reportedly strikes UK trade deal as he teases announcement with ‘big respected country’
08:35
,
Alexander Butler
UK-US trade deal would be first agreed since Trump's tariffs
08:28
,
Alexander Butler
A trade deal between the UK and US would be the first agreed since Donald Trump announced sweeping global tariffs in April 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.
Although details of the agreement are not immediately clear, a trade deal would be a major win for the UK, which has sought a trade deal with the US for years.
A busy week for the UK's trade negotiators
08:20
,
Alexander Butler
It has been a busy week for the UK’s trade negotiators, with the UK-US agreement coming just days after Britain struck a deal with India.
On Tuesday, Sir Keir Starmer hailed a “landmark” agreement with the South Asian country that will boost trade with the country by £25.5bn.
In what the prime minister billed as a major coup, he said the agreement, which focuses on whisky, gin, cars and cosmetics, will boost the economy and cut prices for consumers.
Securing a post-Brexit deal with India, one of the world’s fastest-growing economies, has been a holy grail for successive prime ministers, with Boris Johnson famously promising to strike an agreement by Diwali in October 2022.
Analysis: What could be in the US-UK trade deal?
08:11
,
Kate Devlin, Whitehall Editor
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.
Watch: Defence secretary grilled on UK-US trade deal
08:08
,
Alexander Butler
Defence secretary refuses to comment on UK-US trade deal
08:06
The Defence Secretary has declined to comment on reports a US-UK trade deal could be announced on Thursday.
John Healey told Times Radio: “It’s certainly true that the US is an indispensable ally for the UK, both on economic and national security grounds.
“It’s also true that since the Prime Minister visited the White House in February we have been in detailed talks about an economic deal.
“But I have to say, throughout that period, ministers like me have been keen to give the negotiations the space to get the best possible deal for the UK.
“So, we just haven’t been giving a running commentary on developments or timelines, so I’m not going to start now.”
What US tariffs is Starmer hoping to renegotiate as part of trade deal?
07:47
,
Alexander Butler
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.
Trade talks continuing at pace, says No 10
07:38
,
Alexander Butler
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.”
Analysis: US-UK trade deal would be coup for Keir Starmer
07:27
,
Kate Devlin, Whitehall Editor
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.
Trump to announce trade deal with ‘big respected country’
07:22
,
Rhian Lubin
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!!!”
Trump’s White House trade adviser Peter Navarro pledged last month that the administration would reach trade deals with “90 countries in 90 days.” Experts said there was “no way” he could achieve that mark.
