U.S.-UK trade deal to be narrow, keep Trump’s 10% universal tariffs in place – CNN

Published 08/05/2025, 15:28
© Reuters

Investing.com -- President Donald Trump is set to announce a limited trade agreement with the United Kingdom (TADAWUL:4280), but it will leave in place the 10% universal tariffs he imposed earlier this year, CNN reported on Thursday.

Though Trump described the deal as “full and comprehensive” in a series of posts on Truth Social, U.S. and U.K. officials reportedly told CNN the agreement will be narrow, focused more on setting the groundwork for future negotiations than delivering immediate economic relief. 

The outline includes easing the burden of Trump’s 25% tariffs on steel and autos from the U.K., in exchange for British concessions such as relaxing digital taxes on large U.S. tech companies.

CNN noted that the deal will likely resemble a “heads of terms” agreement rather than a binding trade pact. 

The report also said the announcement surprised some U.K. officials, who saw recent weeks of talks as productive, but not reflective of an imminent agreement.

CNN also noted that JPMorgan analysts said the scope appears limited, with economic benefits for the U.K. expected to be modest.

While British Prime Minister Keir Starmer is not attending Thursday’s announcement due to scheduling conflicts, he confirmed talks with the U.S. were ongoing and would provide further details later.

The announcement is part of a broader effort by the Trump administration to strike similar deals globally before a 90-day tariff pause expires in July.

CNN reported that officials are also pursuing talks with India, Japan, and South Korea.

 

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