UK edges closer to US trade deal for cars and steel
The UK is coming close to agreeing a trade deal with the US that would see president Donald Trump’s tariffs on motor and steel exports slashed, according to reports.
The additional 25 per cent tariffs that Trump instituted on steel and car imports earlier this year are expected to be reduced in a deal later this week, the Financial Times reported.
One senior British official told the paper that negotiations were continuing “at speed”, with officials describing the quotas on offer from the US as “generous”.
In return, the UK has offered concessions such as a softening of the digital services tax on big tech firms and cuts to tariffs on US cars and agricultural products.
Sources with knowledge of the negotiations told the paper that the deal had been held up over disagreements around the pharmaceutical sector, while the UK is not expected to agree to demands on US food production, such as accepting chlorine-washed chicken.
The UK was previously allowed to export up to 500,000 tonnes of steel a year to the US without import taxes, but the deal was abandoned under Trump after imposing steep tariffs on the metal.
The news came following a landmark free trade deal was agreed between the UK and India yesterday, which projected to be worth as much as £25.5bn in bilateral trade, adding £4.8bn to the UK economy.
Trump has pledged to make “90 deals in 90 days” after instituting a pause on his sweeping tariffs just days after unveiling them on ‘Liberation Day’.
Treasury Secretary Scott Bessent is set to hold meetings with Chinese representatives in Switzerland this weekend to attempt to reach a conclusion.
However, the administration has since signalled that it is failing to reach a wide number of trade deals, with Trump telling reporters yesterday that “we don’t have to sign deals”.
Bessent suggested last night that the talks with China would focus on de-escalation rather than a significant trade deal, but said “we’ve got to de-escalate before we move forward”.
Trump has also indicated an announcement on a deal with Europe that will be “as big as it gets” between Thursday and Monday, after reports that the EU were planning to hit around €100bn of US goods with tariffs if trade talks failed.