The UK government is working to finalize a post-Brexit trade deal with the United States before the announcement of new tariffs by US President Donald Trump on Wednesday.

Since leaving the European Union, Britain has aimed to secure a trade agreement with the US, but previous efforts under the Conservative government fell short. 

However, following Labour leader Keir Starmer’s visit to Washington in February, there is renewed optimism that a deal may soon be reached.

Trump has hinted at the possibility of a "great" deal to prevent the imposition of tariffs on the UK, praising Starmer as a formidable negotiator. 

Ongoing talks have involved key figures such as Business Secretary Jonathan Reynolds and a phone call between Starmer and Trump earlier this week.

The UK government hopes to finalize an agreement before April 2, dubbed "Liberation Day" by Trump, when he plans to unveil tariffs on imported vehicles and auto parts, with retaliatory measures expected as trade tensions escalate.

Starmer confirmed that the UK is in discussions with the US to reduce the impact of these tariffs. Finance Minister Rachel Reeves stated that Britain would avoid escalating trade disputes, unlike other major economies, which have hinted at retaliation against Trump's proposed auto-sector tariffs.

Downing Street has described the potential deal as an "economic prosperity deal," indicating that it may not reach the full scope of a free trade agreement sought by the UK.

Economist Jonathan Portes noted that while Brexit provides the UK with more flexibility, it also means less bargaining power compared to its former EU position. 

Reports suggest that the UK may reconsider its digital tax to secure tariff exemptions, though Starmer emphasized that the nation's interests remain the top priority.

Source: Agencies 

BDST: 1327 HRS, MAR 29, 2025
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