A team of senior British trade negotiators is currently in Washington engaging in talks to finalize a deal with the United States. The negotiations aim to secure an agreement before the upcoming UK-EU summit on May 19. Despite the possibility of an early deal, challenges have arisen following President Trump’s recent announcement of film industry tariffs, which have raised concerns and complicated the negotiation process.

The British officials are focused on obtaining tariff relief in specific sectors, including steel, aluminum, and cars, in exchange for adjustments to the digital services tax paid by large US technology companies. The Trump administration’s shifting priorities and chaotic approach have added complexity to the discussions but have not halted progress entirely.

The talks in Washington are targeting unresolved issues around pharmaceuticals and films, two crucial industries for the UK economy. Trump’s threats of imposing tariffs on these sectors have created uncertainty, particularly regarding the UK’s film industry, which has recently seen significant growth and investments from major US productions.

As negotiations continue, the UK remains committed to upholding its standards, with Prime Minister Keir Starmer ruling out compromising on food production standards for increased trade with the US. The urgency to finalize the US agreement before the UK-EU summit reflects the government’s strategic approach to secure beneficial deals while aligning with European standards.

Additionally, recent agreements with India have demonstrated the UK government’s willingness to engage in trade deals that address long-standing issues, even if they do not fully meet British demands. This pragmatic approach aims to lay the foundation for broader economic partnerships in the future, despite initial compromises.