President Donald Trump on Thursday announced what he called a "full and comprehensive" trade agreement with the United Kingdom, marking his administration's first formal pact since launching sweeping new tariffs last month that roiled markets and upended global trade talks.
"The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," Trump posted on Truth Social. "Because of our long time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement."
Details of the deal remain limited, but British officials described the agreement as a "heads of terms" arrangement - a framework outlining key concessions ahead of final ratification. According to reports cited by Sky News, the UK agreed to allow greater access to its agricultural and food markets in exchange for U.S. relief on auto and steel tariffs.
The pound rose 0.4% against the dollar shortly after reports of the deal emerged.
The announcement follows Trump's April 2 "Liberation Day" tariffs, which imposed a 10% blanket levy on imports and steep "reciprocal" tariffs on key trade partners. While the UK avoided the harshest of these tariffs, British exports of cars, steel, and aluminum still faced a 25% surcharge. Trump temporarily paused the most severe country-specific tariffs for 90 days but left the baseline 10% and sectoral levies in place.
Trump is expected to formally outline the UK agreement at 10 a.m. ET during an Oval Office address. Meanwhile, UK Labour Party leader Sir Keir Starmer, addressing a London defense summit, said, "Talks with the US have been ongoing and you'll hear more from me about that later today."
Trump's top trade officials are also preparing to meet with Chinese counterparts this weekend in Switzerland. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will sit down with Chinese Vice Premier He Lifeng amid escalating tariff tensions.
Trump's officials have hinted that more deals may be forthcoming. In recent days, he has said negotiations are progressing with Japan, South Korea, Vietnam, and India.
