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News analysis
The deal could help some sectors and boost confidence among consumers and businesses, but the British economy faces other challenges.
May 8, 2025, 7:07 a.m. ET
The British government made faster economic growth its No. 1 mission. But efforts to kick-start it have been repeatedly knocked off course by a global economy lurching from one crisis to another.
On Thursday, British officials appeared to secure a win: The country is set to announce some form of trade deal with the United States that will ease the impact of recent increases in U.S. tariffs.
President Trump said on social media on Thursday that the agreement with Britain “is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.”
British officials have been negotiating in Washington for months as they sought to insulate their country from Mr. Trump’s desire to reshape the global trade order. They also wanted to protect an economy that barely avoided a recession at the end of last year and was on course for a relatively strong recovery later this year.
However, officials failed to secure exemptions last month when Mr. Trump hit Britain with the 10 percent “base line” tariffs, which were imposed on America’s trading partners.
Britain is also subject to 25 percent tariffs on cars and steel. And the country’s leaders have been concerned about threatened tariffs on pharmaceuticals and films, two important exports. Like other countries, forecasts for Britain’s economic growth have been slashed because of the trade uncertainty.
English (US)