The United States and Britain are set to announce a trade deal that will alleviate the impact of President Trump’s tariffs and present a political win for U.K. Prime Minister Keir Starmer. Trump touted the forthcoming comprehensive agreement as one that will solidify the relationship between the two countries for years to come, marking the first bilateral trade deal amidst Trump’s tariff impositions. While not a full free trade deal, the agreement is expected to offer tariff relief to specific sectors, notably including the reduction or removal of import taxes on U.K. cars and steel, key industries for Britain. Negotiations have also centered on tariff exemptions for pharmaceuticals and increased access to the British market for U.S. agricultural products. The deal underscores Starmer’s diplomatic approach to Trump, as the U.K. avoided retaliatory tariffs unlike the European Union.

Although a trade deal with the U.S. holds symbolic importance for British exporters, it may not fully address Trump’s trade deficit concerns. The U.S. maintains a trade surplus with the U.K., with British exports primarily comprising services rather than goods. Trump’s interest in a U.K. trade pact dates back to Brexit, and recent remarks indicate optimism for increased American exports to the U.K. This deal is part of Starmer’s broader trade strategy, which includes agreements with India and efforts to ease trade barriers with the EU following Brexit. The impending trade announcement reflects ongoing efforts to strengthen international economic ties amid evolving global trade dynamics.