Trump to make ‘big’ announcement today

President Trump appears to have confirmed the announcement of a UK-US trade deal this afternoon.

In a post on his Truth Social platform, he wrote: “This should be a very big and exciting day for the United States of America and the United Kingdom. Press Conference at The Oval Office, 10A.M. Thank you!”

America’s trade deficit widened to a record high in March as businesses boosted imports of goods before the introduction of tariffs, dragging gross domestic product into negative terrain in the first quarter for the first time in three years.

The trade gap jumped 14.0 per cent to a record $140.5 billion from a revised $123.2 billion in February, according to the Department of Commerce’s Bureau of Economic Analysis.

Economists had forecast the trade deficit rising to $137.0 billion from the previously reported $122.7 billion in February.

• Read in full: American businesses rush to import goods before Trump’s tariffs take effect

Britain had a surplus in its goods trade with the US of about £2.2 billion, according to the Office for National Statistics. However, Washington’s statistics agency found that the US had a $11.9 billion (£9 billion) surplus in its goods trade with the UK.

In 2023, the US was the UK’s largest single trading partner for services in both directions, and the largest export partner for goods. In total, the UK exported £186 billion worth of goods and services to the US.

By far the biggest goods sector is machinery and transport, with £11.6 billion of mechanical machinery like cranes and bulldozers exported to the US last year.

The day before the UK-US deal announcement, Labour publicly confirmed for the first time that it is pursuing a youth mobility scheme with the European Union.

The government previously denied plans for a scheme to allow young people to study and work on the continent — and vice versa — but Nick Thomas-Symonds, the Europe minister, has now said that “a smart, controlled youth mobility scheme would of course have benefits for our young people”.

Britain already has youth mobility schemes with several countries including Australia, Canada and Japan. Thomas-Symonds told the Financial Times that ministers “will consider sensible EU proposals in this space”.

• Read in full: A ‘one in, one out’ approach aims to address migration concerns

By Aubrey Allegretti

Sir Keir Starmer views it as a moment of vindication. For months the prime minister has faced intense criticism — including from his own benches — because of his approach to President Trump.

Where other world leaders have gone studs up, confronting the US president over Ukraine and global tariffs, Starmer has opted to take the diplomatic route. Flattery and offers of friendship have been very much the order of the day.

Shortly after 1am on Thursday, while the prime minister and most of his team were asleep, Trump announced to the world that he was poised to announce a “MAJOR TRADE DEAL” with “A BIG, AND HIGHLY RESPECTED, COUNTRY”. That country turned out to be Britain.

• Read in full: The devil will be in the detail of what concessions have been made

MPs will get the chance to ask about the economic deal with Washington later today.

An urgent question has been granted to Andrew Griffith, the shadow business secretary, scheduled for about 10.30am. It will be a chance for MPs to quiz a minister on the negotiations.

If ministers decide to, they could instead deliver a statement to parliament instead — meaning timings are subject to change.

Sir Keir Starmer, in a speech at the London Defence Conference at King’s College, said the US was “an indispensable ally”.

He added: “As you know, talks with the US have been ongoing. You’ll hear more from me about that later today.”

HENRY NICHOLLS/AFP/GETTY IMAGES

President Trump has said he plans to announce pharmaceutical tariffs “over the next two weeks” as he steps up his efforts to return supply chains and production of critical industries to the United States.

Trump started an investigation into the national security implications of pharma imports on April 1, seen as the precursor for protectionist policies designed to pressure global producers to set up in the US.

Import charges will have a particular impact on companies based in Britain and Ireland, which have large trade surpluses with the US of the kind that Trump is determined to eradicate. Pharmaceuticals are one of the UK’s top exports to the US, worth £6.5 billion last year.

• Read in full: Attempts to move production to US could affect companies in Britain and Ireland

American and Chinese officials will finally hold trade talks later this week, a first attempt to limit the tariff war launched by President Trump on his “liberation day” on April 2.

In a co-ordinated announcement, spokespeople for the two governments said Scott Bessent, the US treasury secretary, Jamieson Greer, the trade representative, and He Lifeng, the Chinese vice-premier, would arrive in Switzerland on Friday for talks on Saturday and Sunday.

“I look forward to productive talks as we work towards rebalancing the international economic system towards better serving the interests of the US,” Bessent said in a statement on Tuesday evening.

• Read in full: US treasury secretary the Chinese vice-premier will meet in Switzerland

A US-UK trade deal would be “another Brexit benefit”, Andrew Griffith, the shadow trade secretary, said.

Responding to reports of an announcement this afternoon, the Conservative MP said in a post on X: “A comprehensive UK-US trade deal would be welcome and another Brexit benefit. We will of course scrutinise the detail of any deal — which should first be announced to parliament.”

Griffiths also took aim at Ed Miliband, the energy and net zero secretary, and said: “Restoring growth to the UK also requires reversing Labour’s attacks on business and cutting ‘Red Ed’s’ high energy costs.”

Ministers are understandably keen to laud the benefits of their trade deal with India but so far details are thin on the ground.

No text of the agreement has been published and material in the public domain is focused on what each side wants to emphasise — so what are the crucial questions that remain unanswered?

• Read in full: Several issues need clarification, including its impact on immigration

MPs should be given a vote on any UK-US trade deal so the agreement can be “properly scrutinised”, the Liberal Democrats said.

Daisy Cooper, the deputy leader, 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.”

Britain’s trade deal with India will cost the Treasury about £200 million a year in lost taxes and make it cheaper for Indian firms to bring workers to the UK, an internal Treasury analysis concluded.

Sir Keir Starmer defended the deal and dismissed claims by the Conservatives that the agreement would undercut British workers as “incoherent nonsense”.

However, sources said that an impact assessment of the deal, carried out under the last government, found that excluding Indian workers sent to Britain by their companies from national insurance payments for three years would see tax revenues fall by up to £200 million a year.

• Read in full: Impact assessment found national insurance concessions would come at considerable cost

The United States is by the far UK’s largest trading partner. According to data released by the Office for National Statistics (ONS) on April 25, in 2024, the UK purchased £57.1 billion worth of goods from America and it sold £59.3 billion of products to the country, leaving the trading relationship between two countries broadly in balance. Germany is the second biggest purchaser of UK goods, followed by the Netherlands and the Republic of Ireland.

According to the ONS, of the nearly £60 billion of goods exported to America from the UK last year, machinery and transport equipment represented £29.1 billion of that total, by far the category with the highest value of US sales. The statistics showed that sales of mechanical power generators, which includes products such as turbines and internal combustion engines for cars, reached £4.6 billion last year.

• Read in full: Car manufacturing and the steel sector remain exposed to Trump’s tariffs

The details of the UK-US trade deal remain unclear, and it may be that the announcement will only set up a framework before more negotiations.

During talks the UK government has sought relief for the car industry, the food and drink sectors and the pharmaceutical and steel industries.

It is believed that the White House has demanded lowering UK tariffs on American cars and agricultural products, as well as removing taxes on US tech firms.

John Healey, the defence secretary, refused to comment on reports of a UK-US trade deal.

WIKTOR SZYMANOWICZ/FUTURE PUBLISHING/GETTY IMAGES

“Ministers like me have been keen to give the negotiations the space to get the best possible deal for the UK,” he told Times Radio.

“So, we just haven’t been giving a running commentary on developments or timelines, so I’m not going to start now.”

Sir Keir Starmer will provide an update on US trade talks “later today”, a Downing Street spokeswoman said. She added that the talks have been “continuing at pace”.

“The prime minister will always act in Britain’s national interest — for workers, for business, for families,” the spokeswoman 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.”

President Trump trailed the deal with a post on his Truth Social platform on Wednesday night.

He said that the announcement would be made at a “big news conference” at the White House at 3pm UK time (10am in the US).

SAMUEL CORUM /THE MEGA AGENCY

Trump did not confirm it concerned Britain but wrote that it was “a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY”. He added that it was “THE FIRST OF MANY!!!”

The president has previously claimed the US was close to reaching deals with Japan, South Korea and Vietnam.

President Trump is expected to confirm the UK-US trade deal later on Thursday afternoon.

The agreement would be the first deal reached since Trump announced global tariffs last month on what he called “Liberation Day”. Britain was hit with a 10 per cent overall tariff — the lowest level imposed — as well as a general 25 per cent tariff on steel, aluminium and cars.

Talks between the US and UK have been intensifying over recent months. Sir Keir Starmer discussed the possible deal when he met the US president at the White House in February.

Rachel Reeves, the chancellor, met with the US Treasury secretary Scott Bessent in April, and said that the government had been “working flat out” to get a deal over the line.

It come after the UK’s announcement of a trade deal with India on Tuesday.