The British government is scrambling to secure a last-minute post-Brexit trade agreement with the United States in an effort to avoid—or at least soften—tariffs on European imports expected to be announced by President Donald Trump next week.
Since leaving the European Union in 2020, the U.K. has been pursuing a new trade deal with the U.S., though talks had largely stalled under the previous Conservative government. Current Prime Minister Keir Starmer of the Labour Party met with Trump at the White House in February and came away optimistic that a deal could be finalized.
“We’re engaged in discussions with the United States about mitigating the impact of tariffs,” Starmer said as the weekend approached.
Trump appeared to share that optimism, saying a “great” deal was on the table—one that could help the U.K. avoid the looming tariffs. Business Secretary Jonathan Reynolds recently traveled to Washington to continue negotiations, while Trump and Prime Minister Starmer spoke again by phone earlier this week to discuss the path forward.
Negotiations have ramped up ahead of April 2—dubbed “Liberation Day” by President Trump—when he is expected to unveil a sweeping package of reciprocal tariffs targeting several major trading partners, including the U.K. and the European Union.
While Trump has already imposed tariffs on imports from Canada, Mexico, and China, he has so far held off on penalizing the EU or the U.K., though he has repeatedly signaled that such action is likely.
“Am I going to impose tariffs on the European Union? Do you want the truthful answer, or should I give you a political answer? Absolutely,” the president told reporters back in January. “Absolutely. The European Union has treated us so terribly,” Trump added, reaffirming his longstanding concerns about the bloc’s trade practices.
Trump has signaled plans to impose steep tariffs on imported vehicles and auto parts, with additional tariffs on other goods likely to follow.
“We’re engaged in discussions with the United States about mitigating the impact of tariffs,” Starmer told reporters earlier this week. Finance Minister Rachel Reeves stated on Thursday that Britain would not seek to “escalate” trade wars. This stance contrasts with Canada and European nations, all of whom have vowed to “retaliate” despite already imposing tariffs on American goods.
For instance, the EU applies tariffs of 10 percent on American automobiles, while European cars entering the United States face only a 2.5 percent tariff.
The U.K. described a potential agreement as an “economic prosperity deal,” although Downing Street acknowledged that they would not receive the “free trade” agreement they had initially hoped for.
“Some type of arrangement that might let the UK escape some tariffs is possible, but it would not be a full-scale trade deal,” Jonathan Portes, professor of economics at King’s College London, told the Associated Press. “Brexit is a double-edged sword — it gives us more flexibility, and we can negotiate with a view to our own interests.”
He added: “But equally, it means we have less weight than as part of the EU and moreover we cannot afford to agree to anything that complicates our trading relationship with the EU.”
Reports from UK media indicate that London might eliminate a tax on tech giants to avoid US tariffs under Trump, thereby facilitating a trade deal.
Starmer, in response, stressed that “in the end, our national interest has to come first, which means all options are on the table”.
His spokesman added that the UK will “make sure that businesses pay their fair share of tax, including businesses in the digital sector.”
The trade negotiations come as British automotive heavyweight Rolls-Royce recently informed shareholders of plans to shift jobs and manufacturing operations to the United States in an effort to get ahead of President Trump’s proposed tariffs.
In addition to scaling back its presence in Canada, Mexico, and China, the company has signaled it may further relocate operations from the U.K. and other European sites to avoid potential tariff-related disruptions.
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