The UK and US are poised to announce a long-awaited trade deal in what Donald Trump has promised to be a “very big and exciting day”.
It makes Britain the first nation to strike such an agreement with the US president since he unleashed his wave of global tariffs, giving Sir Keir Starmer a welcome boost after the local elections drubbing.
However, the devil will be in the detail. A UK-US trade deal has been touted as a possibility since Brexit but negotiations frequently stalled under the Tories because of key sticking points like food standards and the NHS.
Politics latest: Trump says UK-US trade deal is a ‘great honour’
The prime minister is expected to say more later on Thursday, while Mr Trump has promised a press conference at 10am in Washington, 3pm UK time, but here’s what we know so far…
Not a full trade deal ‘in traditional sense’
Mr Trump has posted on his Truth Social Platform that “the agreement with the United Kingdom is a full and comprehensive one”.
However, Sky News understands this will not be a free trade agreement in the traditional sense, but rather a deal focused on specific sectors.
The terms are expected to focus on offsetting the impact of Mr Trump’s tariffs, after he placed a baseline 10% levy on all UK exports and a 25% charge on steel, aluminium and cars.
Concessions on food and agriculture
Securing concessions for the car industry has been a priority given the US is the UK’s largest single-country automotive market, worth £9bn and accounting for one in every four cars sold abroad.
Sky News business correspondent Paul Kelso understands that to secure those concessions, the UK team has agreed to give way on demands for greater access to UK markets for American food and agriculture products.
Pic: AP
This has previously been a red line as the US allows chlorinated chicken and hormone-injected beef, whereas the UK does not, due to concerns over lower welfare standards and poorer hygiene.
Concessions in this area would likely provoke a huge backlash, especially from farmers who already feel undercut by the free trade deals struck with Australia and New Zealand.
Downing Street today insisted that lowering food standards remained a “red line” for any US trade deal, suggesting those regulations are here to stay.
However, the UK does levy tariffs on some food and agricultural products to protect domestic industry, which could potentially be reduced. This, in turn, could open the American market to British farmers if the deal is reciprocal.
Details are not yet clear, but a government source told Kelso the deal will involve “opportunities for British farmers”.
Patients in clinical trials – but NHS ‘not up for grabs’
Another long-standing red line has been the NHS.
Health Secretary Wes Streeting told Sky News in February the health service is “not up for grabs”, meaning it is unlikely US companies will be given access to the market to provide drugs and clinical services.
This is something Mr Trump touted during his first term in office, though he later rowed back on the comments after a cross-party backlash in the UK.
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Health sec: ‘NHS not on table’ in US talks
However, Mr Streeting said NHS patients could take part in US clinical trials as part of a deal in life sciences and medical research.
He told BBC Radio Four: “Providing access to a diverse patient cohort – so in terms of clinical trials – that means we can push the boundaries of our understanding of medical science and research… for the development of new treatments and technologies.”
He said that in return for being in the “driving seat for that groundbreaking research”, we should expect British patients “are at the front of the queue for those new treatments and technologies”, and “that we get a good deal on price”.
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Technology and AI
Reports have previously suggested officials are focusing on a deal on technology and artificial intelligence and a deeper partnership on space.
There has been some speculation the government is willing to ditch the digital services tax, which is paid by tech giants, despite concerns from online safety campaigners.
Chris Southworth, the secretary general of the International Chamber of Commerce, has previously told Sky News that the UK should “avoid going down the route” of a full Free Trade Agreement (FTA) as there are too many “significant points of difference” – and should focus on finance and tech instead.
He said a deal like this could be “achieved within six months as we are so aligned in these areas”, calling the prime minister’s charm offensive on Mr Trump a “game-changer” that could help grow both the UK and US economies if a deal is pulled off.
Crucially, Mr Southworth said a deal on tech also wouldn’t impact the UK’s relationship with the EU – and even provides a “big opportunity for them to be also part of this in the longer term”.
