President Trump is expected to announce a trade deal with the UK later on Thursday, the first for his administration since imposing sweeping "reciprocal" tariffs against all trading partners in early April. Trump teased a "major" pact in a post to Truth Social, which the New York Times and other outlets reported would be with the UK. “Big news conference tomorrow morning at 10:00 am, the Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY.
THE FIRST OF MANY!! !” Trump wrote in the post late Wednesday. The likely details of the trade pact were not clear.
The UK faces a universal 10% tariff on its exports to the US, alongside the sectoral 25% levy on steel, aluminum, and autos. Trump also declared Wednesday he would not pull back tariffs on Chinese goods in order to get China to the negotiating table, countering speculation that he might lower hefty 145% tariffs to break the ice. Top US officials, including Treasury Secretary Scott Bessent and trade representative Jamieson Greer, and their Chinese counterparts are scheduled to meet in Switzerland this weekend to hold trade discussions, boosting hopes for a potential deescalation in the US-China trade war.
Trump has said he has no plans to speak to China's President Xi Jinping, though he has suggested tariffs on imports from China will eventually be softened. “At some point, I’m going to lower them, because otherwise, you could never do business with them, and they want to do business very much,” Trump said on NBC’s Meet the Press last weekend. But he has more recently claimed that "we're losing nothing" by declining trade with Beijing.
China has reportedly compiled a list of US goods exempt from its 125% tariffs, aiming to ease trade tensions without making public concessions. Meanwhile, Trump has defended the 145% tariffs on Chinese imports, claiming China "deserves it" and would likely absorb the costs. On the economic front, Federal Reserve Chair Jerome Powell emphasized on Wednesday that while sentiment has deteriorated, the tariff "shock hasn't hit yet."
The central bank continued to hold rates steady while it awaits further data on the effects of Trump's trade policies. The scale of tariff disruption on the economy will largely depend on how quickly trade deals are reached. After meeting with Canadian Prime Minister Mark Carney on Tuesday, Trump said that the onus to make offers falls on other countries.
"We don't have to sign deals," he said at the White House. "They have to sign deals with us."
