US President Donald Trump is set to announce a trade deal with the UK, with discussions ongoing about lowering tariffs on US cars and digital sales tax. The UK sees a trade deal with the US as crucial post-Brexit, while Trump has focused on expanding US tariffs. A meeting between US and China officials is also planned to address trade tensions.

US President Donald Trump is expected to announce a trade deal with the United Kingdom on Thursday. On Wednesday night, he teased the announcement on Truth Social, describing it as "big news" concerning a "major trade deal" with a "highly respected country."

The announcement will take place in the Oval Office at 10 a.m. in Washington DC (1400 GMT). Although the specifics of the deal are not yet clear, a UK government spokesperson confirmed that Prime Minister Keir Starmer will provide an update on the ongoing trade negotiations later in the day.

A British official suggested that the UK might lower tariffs on US cars and reduce the digital sales tax that affects US tech companies, according to Reuters.

Since taking office, the Trump administration has been focused on expanding US tariff policies. In April, Trump introduced broad tariffs on US trading partners, though many were later reversed or paused to allow for trade talks. However, the 145% tariff on Chinese imports remains in place.

Trump has repeatedly stated that multiple countries are eager to finalize trade deals with the US. Investors will be paying close attention to whether Trump can ease the trade tensions he initiated, which have caused significant volatility in US stock markets. US and Chinese officials are set to meet in Switzerland on Saturday to discuss resolving the ongoing trade war between the two largest economies.

Following Brexit, the UK has been seeking to strengthen its global trade relationships. Although Trump had previously announced tariffs on the UK, they were only 10%, half of what was imposed on the EU. Despite this, securing a trade deal with the US is seen as a top priority for Starmer's government.

A Downing Street spokesperson emphasized that the United States is a vital ally for both the UK's economy and national security, noting that talks with the US have been progressing. Starmer is expected to update the public later today.

Earlier this week, the UK signed its largest post-Brexit trade deal with India. Additionally, discussions with the US have made significant progress, particularly concerning tariffs on steel and autos. Talks are also ongoing regarding Trump's recent proposal for a 100% tariff on movies produced outside the US.