The US and UK agree a trade deal to reduce import taxes on some British cars and metals - here's what is in the deal
Treasury minister Darren Jones calls the deal a "huge relief", adding that Trump's approach to global trade is "one of a number of moving parts"
London stock markets lift for some British manufacturers a day after the deal, as the steel industry calls for more clarity
As ever with deals like this, particularly where there is still quite a bit of work to be done, detail is key, writes our Political editor
UK-US trade deal will create jobs - Starmer
US markets just opened - and stocks are up this morning.
The three major US indexes are all seeing modest gains as the market opens now. The S&P 500 is up 0.65%, the Dow is up 0.49%, and NASDAQ is up 0.27%.
Image source, PA MediaUK Chancellor Rachel Reeves says "there is an incredibly strong trade and investment link between the UK and the US", when asked to comment on a bilateral tariff deal expected to be announced shortly.
"A million Brits work for US firms, a million Americans work for British firms," she says.
Reeves insists that the expected deal with the US wouldn't damage any agreement currently being negotiated with the EU.
"We shouldn't choose between countries. The UK is an open trading economy. Open for trade, open for business, open for investment.
"We want to see trade barriers between the UK and countries around the world to fall because that is good for living standards, that's good for business and for jobs here in Britain," the chancellor says.
The US Secretary of Agriculture Brooke Rollins says the announcement is "big news today" and she will visit the UK in the coming days.
In a post on X, Rollins says: "I look forward to being in the UK Monday as we continue to expand markets for our products around the world!"
Bernd Debusmann Jr
Reporting from the White House
Image source, Bernd Debusmann Jr/BBC NewsGood morning from the White House, where a small trickle of reporters is starting to file in for today's announcement at the Oval Office.
As one might imagine, there's tremendous interest - both domestically and internationally - in the announcement of the first "deal" made by the administration as a result of their tariff campaign.
Already, I've seen reporters from as far afield as Andorra and Sweden doing lives and filing reports.
While this won't be a "trade deal" in the truest sense of the word, the tone of the announcement from Trump and the White House is likely to be a triumphant one.
The US President has repeatedly, and consistently, highlighted that over 80 countries want to come to agreements. Trump says this is a sign that his administration's push for tariffs will ultimately be successful and good for the US economy.
He is also likely to use the Oval Office occasion to celebrate US ties with the UK - a country he is known to have a particular fondness for.
The fact that the deal comes on VE Day - which he has recently declared as "Victory Day" in the US - is also music to the ears of the Trump White House.
Image source, EPAIt's approaching 09:00 in Washington and 14:00 in London. If you're just joining us, let's look at the major developments:
We'll bring you live updates of the announcements - with analysis from our correspondents in the UK and US - so stick with us.
The UK government has declined to comment on US President Donald Trump's claim earlier today that the deal expected to be announced would be "full and comprehensive".
The Prime Minister's official spokesman said: "We've always been clear that we want to do a deal that's in the British national interest, and support a substantial UK-US trading relationship.
"Those talks are continuing and we look forward to providing an update later today."
At the same time, Downing Street insisted that lowering food standards remained a "red line" for any US trade deal.
"We are not going to lower British food standards. That's something set out in the manifesto," the spokesman said.
Malcolm Prior
Rural affairs producer
Despite previous government assurances that imports of chlorinated chicken or hormone-treated beef will not be allowed into the UK, farmers will be watching today’s trade announcement closely – and nervously.
Those producing food here have long said they should not be made to compete with cheap imports that have been produced to lower standards of animal welfare, environmental protection or food safety.
And it’s not just chicken and beef they are worried about.
The National Pig Association has raised concerns over what it sees as a “significant gap” in terms of production methods that are acceptable in the US compared to the UK. That includes the use of sow stalls in the US, narrow crates that house sows throughout their pregnancy, that have been banned in the UK since 1999.
NPA chair Rob Mutimer said higher welfare standards in the UK means the cost of production here is “substantially more expensive” than that in the USA.
The call to protect those standards in a US trade deal is backed by campaigners, including Compassion in World Farming, which said if “a product is too cruel to produce here, it must also be too cruel to import”.
Meanwhile, NFU President Tom Bradshaw insisted any trade deal that opens UK markets to US produce should also ensure reciprocal access for UK farmers and growers there.
He says a deal that offers in return “nothing more than the reduction or removal of tariffs which didn’t exist eight weeks ago would be an unimaginable failure".
Here are the full quotes from Andrew Bailey's news conference, in which he discusses the UK-US trade deal, which is expected to cut some tariffs.
"We haven't been briefed, but we do have news to suggest that there will be an agreement and we welcome this news," he says.
"It will help to reduce uncertainty. The UK is, though, a very open economy and is affected by the tariffs affecting other economies.
"I say that because I hope the UK agreement, if it is the case this afternoon, is the first of many.
"It is excellent that the UK is leading the way and I do congratulate all those involved."
Image source, ReutersAndrew Bailey says it is "excellent that the UK is leading the way" with an expected trade deal with the US, which will "help to reduce uncertainty".
As a reminder, we're expecting the deal - which will cut tariffs on some goods - to be announced in Washington DC at 15:00 BST.
Image source, PA MediaFarming Secretary Steve Reed says the government will not allow British farmers to be undercut on environment standards
In Parliament, MPs have been questioning the government about the expected announcement of a US-UK trade deal.
Conservative MP Mark Pritchard asks about concerns over chlorinated chicken, hormone-fed beef and antibiotics in pig farming. He wants to know if the government can guarantee British farmers are protected in the trade deal.
Lucy Powell, leader of the House of Commons, says the business secretary is aware of the issues around food standards and agriculture, which have been “redlined” by the government.
Lib Dem MP Tim Farron asks if the prime minister has consulted Farming Secretary Steve Reed on the deal’s possible impact on British farmers.
Reed replies: “We have red lines for not allowing British farmers to be undercut on environmental or welfare standards.”
Neha Gohil
Live editor
The head of trade policy at the British Chambers of Commerce (BCC) says the US-UK trade deal will be met with a "huge sigh of relief" by many British businesses.
The BCC represents about 50,000 businesses in the UK.
“Firms will want to see a reduction in the 25% tariffs that have hit our steel, aluminium and automotive industries and left them reeling," William Bain says.
Bain adds that businesses will also want certainty about the new deal and when it will offer relief from tariffs.
“Inevitably, the deal will involve compromise, but firms will want it to be in the best overall interests of the UK," he says. “This must also not be the end of the process, we must continue to push the argument for free and fair trade."
Jen Meierhans
Business reporter
Image source, PA MediaAs we've been reporting this morning, the US and UK are expected to announce a deal to reduce tariffs later - described by Trump as a "major trade deal".
It won't be a free-trade agreement, which has to be cleared by Congress. What is announced today is likely to be only the bare bones of a narrow agreement. Here's a look at what it could contain:
Cars will be important
Steel and aluminium pact
Pharmaceuticals are a big unknown
Digital services tax olive branch
Food standards will not be included
Faisal Islam
Economics editor
Image source, EPAThe key diplomatic win is that an agreement on tariffs will keep the US sweet while leaving the door open to a deal with Europe - which would be much more economically significant for the UK.
Economically, this US deal is likely to be relatively small. It’s about the rolling back of some of the trade damage done by Donald Trump’s original announcement.
In contrast, the EU is the UK’s largest trading partner. Chancellor Rachel Reeves was clear about it being a priority when I interviewed her recently, suggesting that moving closer to the EU on trade was a bigger priority, despite her current focus on talks with the US.
"I understand why there's so much focus on our trading relationship with the US but actually our trading relationship with Europe is arguably even more important, because they're our nearest neighbours and trading partners," she told me.
Liv McMahon
Technology reporter
Image source, EPAIt is rumoured that the British government will reduce its tax on US digital services as part of the deal to reduce tariffs.
The digital services tax was introduced in April 2020 under the then Conservative government, with the aim of making overseas tech firms accountable for financial value contributed by UK users.
It charges businesses that run social media, search engines or online marketplaces a flat 2% rate tax on revenues derived from UK users.
Firms only have to pay it if they raise more than £500m in global revenues and £25m from UK users annually.
But this is a threshold easily met by US tech titans, such as Meta, Google, Apple and Amazon, raising billions annually worldwide each year. The UK reportedly, external netted nearly £360m from American tech firms via the tax in its first year.
Of course, we won’t actually know whether it is set to be narrowed until the US-UK tariffs agreement is unveiled this afternoon.
In weighing up whether to make the concession, the UK will have had to consider several competing pressures - such as its drive to raise revenue and further growth with the political risk of being seen to concede to big tech, or President Trump.
Image source, ReutersDonald 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
British carmaker Jaguar Land Rover announced it was pausing shipments in April due to the impact of Trump's tariffs.
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, ReutersTrump 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, EPAEuropean Commission President Ursula von der Leyen said in April "the global economy will suffer" after Trump imposed tariffs
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, EPAIn 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 MediaMay 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?