US President Donald Trump said on Wednesday that a trade deal with a "highly respected" country was imminent. The UK government confirmed on Thursday morning that the nations will make an announcement later in the day.
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The UK government said on Thursday that it would be announcing a trade deal with the US imminently.
"The prime minister will always act in Britain’s national interest – for workers, for business, for families," said a No10 spokesperson.
"The United States is an indispensable ally for both our economic and national security. Talks on a deal between our countries have been continuing at pace and the prime minister will update later today.”
The news comes after President Trump said on Truth Social on Wednesday that a trade deal with a "big and highly respected country" was soon to be announced.
If a treaty materialises, it would make the UK the first country to reach an agreement with the US since so-called "Liberation Day".
Tariffs currently in place
Given the speed of negotiations, experts nonetheless expect the deal to be limited and primarily focused on the car and steel industries.
These products are currently facing a 25% tariff, rather than the 10% baseline tariff placed on other goods from the UK.
When Trump announced a raft of levies on “Liberation Day” in early April, the UK managed to escape lightly. While the EU was hit with a 20% duty, and several Asian nations faced duties over 30%, UK goods were targeted with a 10% tariff.
"Reciprocal" levies above the 10% baseline were suspended for 90 days on 9 April, although this doesn't directly affect the UK, which had already secured this lower rate.
President Trump's recent proposal to impose tariffs on foreign films will also be concerning for the UK, which counts the industry as a major export.
Friends and foes
British negotiators have been in Washington this week to try and broker a more favourable trading partnership with the US, while the UK is also looking for allies elsewhere.
After three years of talks, UK Prime Minister Sir Keir Starmer announced a trade deal with India on Tuesday. The pact will make it cheaper for companies to move Indian staff to the UK, while New Delhi has promised to cut tariffs on gin and whisky in return.
The UK and the EU are also set to hold a summit on 19 May, where one of the key topics on the table will be a post-Brexit youth mobility scheme. This would make it easier for young people from the EU and the UK to travel and work freely in each other's countries.
The US, meanwhile, has been negotiating with foreign partners since the pause to Trump's reciprocal tariffs. Deals with Japan, India, and Israel could be in the pipeline.
Negotiations with Beijing appear to be going at a slower pace. The US is still imposing a 145% duty on Chinese imports, and Trump has highlighted his unwillingness to move first and lower tariffs in anticipation of a deal.