Image source, Reuters

Donald Trump has just posted again on Truth Social and says: "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.

"Because of our long time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!"

Dharshini David
Deputy economics editor

The potential tariff pact could offer considerable relief to the car and pharmaceuticals industries - but may not significantly shift the dial for British economic growth.

The industries at the heart of discussions make up less than a third of the UK’s exports of goods to the US, the total value of those equal to less than 1% of GDP.

The baseline 10% universal tariff on most goods sold into the US seems set to remain.

Moreover, there’s what the UK may have to surrender in return for these concessions - including revenues raised by the digital devices tax.

The UK-India deal agreed earlier this week may only bump up our GDP by 0.1% - a US tariff pact may be less significant.

Nonetheless, smoothing things over in this key relationship -and being first in line for such a pact - is of huge symbolic importance for the UK in the new global trade (dis)order.

Image source, Reuters

Trump has just said today should be "a very big and exciting day for the United States of America and the United Kingdom," in a post on Truth Social.

The US president reiterates that there will be a news conference at the Oval Office at 10:00 local time (15:00 BST).

Jonathan Josephs
BBC business reporter

Image source, EPA

It’s inevitable that some politicians will point to Brexit as helping make today’s US-UK trade agreement possible.

Whatever is in the agreement in the coming hours, we will see a clear difference in the way President Donald Trump is treating London and Brussels.

That’s because at 11:00 BST we are also expecting an announcement from the EU about what countermeasures it will take if its own efforts to reach a deal fail.

It’s possible to see that as simply good preparation or a negotiating tactic to get more out of the US but it also points to the difficulty of getting a deal done.

Ireland's Enterprise Minister Peter Burke has told the BBC it will be “very challenging” for the EU to get an agreement sorted before July’s deadline.

That’s despite the importance of EU-US trade, a relationship worth nearly $1tn (£750bn) last year.

Nick Edser
Business reporter

Image source, EPA

In return for striking a deal on tariffs with the US, the UK is likely to reduce some of the levies it charges on US goods entering the country.

The UK currently imposes a 10% tariff on US car imports, but this is expected to be cut. Last month, US business groups were looking at lowering UK tariffs on US cars to 2.5%, and the Chancellor, Rachel Reeves, indicated she was open to a cut to secure a wider trade deal.

Taxes on US tech firms could also be altered. At the moment the UK’s Digital Services Tax imposes a 2% levy on revenues of tech giants which raises about £800m a year. It affects the likes of US firms such as Amazon and Meta, but there is speculation the tax could be lowered.

Tariffs on US farm products could also be cut but, as Chancellor Rachel Reeves set out earlier this year, the UK will not accept US production standards such as chlorine-washed chicken and hormone-treated beef.

Chris Mason
Political editor

Image source, PA Media

May is rapidly becoming a month when we’ll be hearing quite a lot about UK trade deals.

There was the one with India announced the other day. The week after next there will be a UK-EU Summit in London at which a new deal is expected, and now today’s announcement with America.

It is worth remembering that rather a lot can hang under the loose phrase of a trade deal – and the arrangements will vary significantly. What we expect in the announcement later is a focus on tariffs or import taxes - in particular, cars.

The government will want to talk up whatever it has managed to do to ease the impact of the tariffs imposed by America last month.

As ever with deals like this, what are the trade-offs?

Many are keeping a keen eye on the digital services tax, which was introduced in the UK five years ago “to ensure…large multinational businesses…make a contribution to supporting vital public services”.

It generates around £800m a year in revenue – is it reduced as part of this deal?

Expect to see the British government herald the achievement of doing this deal first, before others – and that is unquestionably something of a win.

But it will also be worth asking: How much is this an improvement on current trading conditions? And, how much is it an improvement on - six months ago – before President Trump’s tariffs explosion?

Prime Minister Keir Starmer briefly references the trade deal with the US during a statement on defence this morning.

Starmer talks about working more closely with allies and describes the US as "indispensable" for economic and national security.

“As you know, talks with the US have been ongoing, and you will hear more from me about that later today,” he says.

In his statement, marking 80 years since the end of WW2, Starmer says he’ll act in the national interest, for workers, businesses and families “to deliver security and renewal for our country”.

Earlier, Downing Street confirmed Starmer will make an announcement about a deal with the US on tariffs today.

Image source, EPA

A UK business group has welcomed the trade announcement coming later today.

Jordan Cummins, UK competitiveness director at the Confederation of British Industry (CBI), tells the BBC's Business Today programme the "rhetoric" around tariffs has "bitten the bottom line" and "fed through into output and labour".

"There are parts of our economy that are really feeling this and they need a big symbolic gesture backed up by some credibility from the government," Cummins says.

He adds that quick movement, especially on steel and cars – both of which have been hit with a 25% import tariff by the US – is "exactly what we need to see".

Faisal Islam
Economics editor

Chancellor Rachel Reeves has been clear that food standards - for example, allowing imports of chlorinated chicken or hormone-treated beef - will not feature in this deal for domestic political reasons.

This is an area where the UK has chosen alignment with EU - and the forthcoming "Brexit reset" with the EU - over the US.

It would be a diplomatic win for the UK if the US has accepted even a narrow deal while dropping demands in this area. Indeed the chancellor hinted at this in her interview with me in Washington.

The big question here, which I pressed Rachel Reeves about, external, is really why the US in any way justifies levying a so-called 10% reciprocal tariff against UK goods.

On its own measures, the US sells more to us than it buys from us - ie, there is nothing to "reciprocate" against.

If a trade deficit is a sign of "cheating" as the White House argues, then it is the UK that is suffering. The underlying 10% tariff looks like staying in place.

This is also an important signal to the rest of the world, and to the markets about substantive moves away from a global trade war.

Nick Edser
Business reporter

The pound jumped initially against the US dollar on reports of a US-UK deal, but the gains were short-lived.

Sterling initially climbed 0.5% against the dollar to reach $1.3356 in Asian trade overnight.

But it wasn’t long before it fell back again, and is currently trading just below $1.32 – close to where it was before news of a trade deal emerged.

On the stock market, the FTSE 100 index of the biggest UK-listed companies opened little-changed, edging up about five points to 8,564.

The financial markets will have a lot to take in today. As well as the trade deal announcement, the Bank of England is expected to cut interest rates later, and will also publish its latest forecasts for UK economy.

Henry Zeffman
Chief political correspondent

Andrew Griffith, the shadow business and trade secretary, says a US-UK deal "would be welcome and another Brexit benefit".

However, Griffith says restoring growth to the economy "also requires reversing Labour's attacks on business" and reducing "high energy costs".

"Conservatives will closely scrutinise any deal which should first be announced to Parliament," he says.

Meanwhile, Liberal Democrat Treasury spokesperson Daisy Cooper says Parliament "must be given a vote" on the deal so it can be "scrutinised".

"A good trade deal with the US could bring huge benefits, but Liberal Democrats will oppose any concessions that threaten our NHS, undermine our farmers or give tax cuts to US tech billionaires," she says.

"If the government is confident the agreement it has negotiated with Trump is in Britain's national interest, it should not be afraid to bring it before MPs."

Faisal Islam
Economics editor

When I was in the US last month, Chancellor Rachel Reeves hosted the cream of American business and Congress at a packed reception at the embassy, hosted by Ambassador Lord Mandelson.

The talk was that the US-UK deal had been done and all it was waiting for was the final nod from President Trump. It appears that has now happened.

But there is a notable difference in how the UK and the US have been describing this arrangement.

The chancellor told me about an "economic and prosperity deal" but the president calls this a "major trade deal". This difference has been there since Keir Starmer met the president in the Oval Office.

The narrow scope appears to have meant some consideration of lower tariffs for US exports of cars to the UK (from 10% to 2.5%).

In return, the UK could win some sort of tariff-free or lower tariff quota exemption from the 25% tariffs on cars. This is the UK’s biggest goods export. The generosity or not of this depends entirely on the number agreed.

Something similar could apply in steel. The big problem was pharmaceuticals. The president has not announced his trade restrictions on medicines yet. The danger was for the UK to agree a deal, but then be hit by a subsequent global tariff on its second most important goods export.

Simon Jack
Business editor

The UK government has confirmed it will announce an agreement on tariffs later today.

Currently the US imposes tariffs of 25% on steel, aluminium and cars - with a baseline or universal tariff of 10% on nearly everything else.

The 25% car tariffs have bitten hard as cars are the UK's number one export to the US - worth around £9 billion last year.

JLR sold 100,000 vehicles in the US last year and temporarily paused exports last month.

What car industry executives are keen to learn is whether there will be an across-the-board lowering of tariffs, or whether a quota system will be imposed under which tariffs are low or zero, with additional charges on vehicles above that quota.

Industry executives have told the BBC they much prefer the former - as a quota could effectively put a ceiling on the number they can export competitively.

But as one executive said - a quota system would be "better than nothing".

In return, the UK may abolish or reduce the 2% digital sales tax imposed on large US ecommerce sellers like Amazon.

This was expected to raise £800 million a year and was imposed to help level the playing field for high street and smaller retailers - so a non-trivial concession if given.

The UK is first in line - this is a significant achievement for Starmerpublished at 07:37 British Summer Time

07:37 BST

Henry Zeffman
Chief political correspondent

The UK has been desperate for a deal of this sort with the US since President Trump unleashed his wave of global tariffs. So have other countries.

It seems the UK has got there first - a significant achievement by Keir Starmer and his government.

In fact, those close to the talks have been saying for some time that the shape of a deal was basically there, but that it was never quite clear when and whether the maverick president might sign off on what his negotiating team had thrashed out.

That he has done so this week makes this a highly significant few days for UK trade, coming just two days after the full free trade agreement between the UK and India.

There’s a clear political boost for the prime minister here too: finalising the deal with India his Conservative predecessors could not reach, and coming to some sort of agreement with the US - even if it’s short of the comprehensive free trade agreement the Conservative governments talked about reaching and never managed.

And there’s a broader point too. Starmer has made a point of forging a warm relationship with Trump - warmer than many expected.

There had been growing grumblings about what dividend he was receiving for his efforts, on trade, Ukraine and any number of other issues.

Here is his answer.

Downing Street has confirmed that Keir Starmer will make an announcement about a deal with the US on tariffs later today.

A spokesperson for No 10 says the US is an "indispensable ally for both our economic and national security" and "talks on a deal between our countries have been continuing at pace".

"The prime minister will update later today," they add.

Dharshini David
Deputy economics editor

The US remains the UK's biggest single trading partner (in terms of individual countries) - buying almost £200bn of British exports.

The UK's biggest goods exports by value last year were cars and pharmaceuticals - hence why any tariff exemptions for those areas are important.

But there are many more categories - from food to scientific equipment - which in total account for the majority of goods exports.

However, two-thirds of what the UK sells to the US is services - from advertising to banking - which are unaffected by tariffs. Yet that growing importance makes maintaining close ties key.

Overall the UK sells as much, broadly, to the US sells to the UK.

That trade balance - a far cry from the deficit of several hundred billions of dollars the US runs with China - is one reason why President Trump is amenable to talks with the UK.

Image source, Getty/Reuters

Today’s expected announcement comes just days after the UK and India announced a trade deal.

That deal will make it easier for UK firms to export whisky, cars and other products to India, and will cut taxes on India’s clothing and footwear exports.

Some Indian and British workers will also gain from a three-year exemption from social security payments, which the Indian government called "an unprecedented achievement".

The exemption applies to the staff of Indian companies temporarily transferred to the UK, and to UK firms' workers transferred to India.

Prime Minister Keir Starmer said the deal would boost the economy and "deliver for British people and business".

India’s prime minister, Narendra Modi, described the agreement as an historic milestone that was "ambitious and mutually beneficial".

A former member of the Bank of England's Monetary Policy Committee says people shouldn't expect too much today - as Donald Trump talked of a "trade deal" instead of a "trade agreement".

"There's a big difference between a trade deal and a trade agreement," Jonathan Haskel tells BBC Radio 4's Today programme.

"Trade deals are limited and short-term and partial, just covering a few items. Trade agreements are broad-based and long-term."

He says the deal could just be a commitment to a "short-term change of policy" - for example, a pause in certain tariffs.

For all the fanfare, this is not a traditional free trade dealpublished at 06:51 British Summer Time

06:51 BST

Dharshini David
Deputy economics editor

For all the fanfare from the American president, and the relief it may bring some sectors, this is far from what we have traditionally thought of as a trade deal.

Rather it will be a carve-out - some exemptions for the UK from the trade barriers that President Trump has imposed in recent weeks.

We expect there to be focus on reducing the extra tariffs areas such as the car industry and steelmakers face, and also perhaps on avoiding penalties for the pharmaceutical areas.

All of these are key areas of exports for the UK when selling to America, but they are not the only ones.

The universal 10% tariff on other items is likely to remain. This is a far cry from the kind of deal that that was being negotiated under the president’s first term.

Moreover, what is announced today is only the framework of terms of this narrow agreement, and there’ll be much work to be done on negotiations and the legal paperwork in the coming months.

But some areas remain off the table - including food standards.

Donald Trump has announced - and scaled back - a swathe of tariffs on countries around the world this year.

Currently, most goods imported from the UK to the US face a blanket 10% tariff.

The UK - like other countries - has also been hit with 25% tariffs on steel and aluminium exports to the US as well as a 25% tariff on cars and car parts.

The UK also charges tariffs on goods from the US and elsewhere - we'll have more details on that it later posts.