Trump says US, UK could reach trade agreement

Investing.com -- The United States and Britain are in discussions over a bilateral trade deal, US President Donald Trump said on Thursday during a joint news conference with UK Prime Minister Keir Starmer. He suggested such an agreement could help prevent the imposition of US tariffs.

"We’re going to have a great trade agreement," Trump said. "We’re going to end up with a very good trade agreement for both countries, and we’re working on that as we speak."

Starmer confirmed that both nations had begun working on a new economic partnership, with a focus on advanced technology, to further strengthen their already close trading ties.

Trump indicated that the framework of a trade agreement could be reached "very shortly," with key officials including Treasury Secretary Scott Bessent, Vice President Vance, Commerce Secretary Howard Lutnick, and national security adviser Mike Waltz leading the negotiations.

He expressed confidence in moving forward quickly, stating he expected to secure a deal "rather quickly, as quickly as it can be done."

When asked whether Starmer had persuaded him to reconsider imposing retaliatory tariffs, Trump responded, "He tried," and praised the prime minister’s negotiating abilities.

"He was working really hard at lunch," Trump said. "I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary. We’ll see."

The US president also emphasized that he was “very receptive” to Starmer’s proposals, repeatedly praising the UK leader as a “very, very special person” and a “very tough” negotiator. He suggested that both nations could reach “a deal that could be terrific.”

“I think we’ll have something, maybe even, in terms of possibilities, agreed to very shortly,” Trump said.

Trump sees tariffs as a tool to reshape trade relationships, reduce deficits, and boost domestic manufacturing. However, analysts caution that US consumers could bear the cost through higher prices on goods, potentially fueling inflation in the world’s largest economy.

During Trump’s first term, the US and UK engaged in negotiations for a free trade agreement, but discussions remained unfinished. When President Joe Biden took office in 2021, his administration halted work on the deal.

Trade between the two countries remains significant, with total imports and exports of goods and services reaching $317 billion in 2023, according to the US Bureau of Economic Analysis.

Britain ranks as the fifth-largest US trade partner, behind Canada, Mexico, China, and Germany. While the US is the UK’s largest individual trading partner, Britain conducts more trade collectively with the European Union’s 27 member states.

Earlier this month, Trump suggested that a resolution on tariffs with Britain was possible, while signaling a firmer stance on imposing duties on EU nations.