Washington (TDI): US President Donald Trump has hinted at the announcement of a major trade agreement with the United Kingdom, in what could mark the first concrete step towards easing tariff tensions that have rattled global markets.
“Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a big trade agreement with representatives of a big and a highly respected country,” Trump said in a statement late Wednesday.
If confirmed, the agreement would represent a major development after months of global uncertainty caused by the massive tariffs announced by Trump administration.
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Under the agreement, the UK could be exempted from certain non-tariff trade barriers. In exchange, Washington may ease 25 percent tariffs on imports of aluminum, autos and steel from UK.
Trump’s top trade adviser Peter Navarro said that Britain was among the most likely candidates for a first deal, alongside South Korea, India and Japan.
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Despite the promise, economist remain skeptical. Jacob Jensen, a trade policy analyst at the American Action Forum, argued that any deal could be a memorandum of understanding (MoU), not a full treaty.
He said that agreements that carry real economic significance typically take months, even years, to finalize.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
