Britain is on the verge of signing a detailed trade agreement with the United States. This deal would be a monumental achievement, for it would be the first such agreement after the U.S. adopted its heavy-handed “reciprocal” tariffs. U.S. vice president JD Vance claimed on April 15 that Britain has a “strong possibility” of winning a similar deal with America. This announcement lays the foundation for a new bilateral agreement between the two countries.
The setting for these talks is the stage in which the U.S. began aggressively employing heavy tariffs against both friends and foes alike in early April. At the moment, Britain runs a trade deficit with the U.S. It stayed clear of escalated duties when former President Donald Trump declared his “Liberation Day” duties back in the summer months. Britain was still left with a baseline levy of 10%.
Despite the ongoing negotiations, uncertainty looms over whether the two nations will finalize a comprehensive trade deal or merely establish a framework for future agreements. Let’s continue those discussions over the next few months. Both sides will need to do some careful work to find each side’s real trade interest.
That’s what top White House officials have been saying for weeks — that concluding TPP and T-TIP is a top priority of the administration. Just last week Trump boasted, “We don’t have to sign deals…They have to sign deals with us.” This statement would appear to run counter to his previous statements. He emphasized, “They want a piece of our market. We don’t want a piece of their market,” highlighting his administration’s stance on trade relationships.
Britain is now pursuing hard-nosed and circumspect discussions with the U.S. These negotiations would greatly change its economic picture, particularly given its unique trade side, which is worth closely examining. The U.K.’s deadly serious about looking for new places to deepen its economic ties. They’re looking for brand new trading opportunities, having gone through Brexit.