The United States President Donald Trump, on Thursday May 8, 2025, described the incoming US-UK trade agreement as “full and comprehensive,” ahead of its formal announcement by the White House later today.
The long-anticipated deal is expected to reduce tariffs on key goods exchanged between the two nations.
Prime Minister Keir Starmer earlier confirmed negotiations had been ongoing, hinting at the agreement during a morning address in London.
“This is a meaningful step for both our economies,” Trump said in a brief statement.
“It’s full, it’s comprehensive, and it puts our countries first.”
However, observers have noted differences in how both governments are presenting the agreement.
While US officials have framed the pact as a major economic win, UK sources remain more measured, avoiding references to a full free trade agreement.
Currently, UK goods entering the US attract tariffs of up to 10%, with even steeper duties on items such as steel, aluminium, and vehicles.
The UK imposes similar tariffs on some American exports.
The new deal is expected to slash some of these duties, particularly on automobiles.
It may also lead to a reduction in Britain’s digital services tax, which has affected major US tech firms.
Despite the positive tone from both sides, the arrangement falls short of a full-scale free trade agreement.
Senior analysts say it focuses more on targeted tariff cuts and regulatory easing than on structural trade reform.
“This is not a traditional free trade deal,” said Deputy Economics Editor Dharshini David.
“But it does offer strategic value amid broader economic challenges.”
The announcement follows months of transatlantic negotiations and comes amid shifting global trade dynamics and interest rate adjustments.
Earlier this week, US interest rates were lowered to 4.25%—a move analysts say could influence trade competitiveness.
President Trump and Prime Minister Starmer last met in February at the White House, where they reaffirmed shared commitments to economic cooperation and global security.
This is a developing story, further details on the scope and sectors covered by the deal are expected later today.
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