The United States and Britain are expected to announce a historic deal that will lead to reduced tariffs on some goods. It is the first agreement since US President Donald Trump imposed tariffs on countries around the world.
Trump posted on "Social Truth" that he would hold an Oval Office press conference on Thursday regarding a "major trade deal with representatives of a great and highly respected country."
"The United States is an indispensable ally for our economic and national security," a Downing Street spokesman said.
"Negotiations for an agreement between our countries have continued apace and the Prime Minister will update later today," the spokesman added.
A British official told Reuters that the two sides were working to agree lower tariff quotas - a tranche of exports subject to lower tariffs - for steel and cars, two sectors that were hit by the 25% US tariffs.
In return, Britain is likely to agree to lower its tariffs on American cars and reduce a digital sales tax that affects American technology groups. It has refused to lower its food standards in order to give American producers greater market access.
Despite the potentially tenuous nature of any deal, it will be politically significant for both countries. Investors have been watching to see whether Trump can de-escalate his trade war after the launch of global tariffs risked reigniting inflation and slowing economic growth.
Trump's trade war has rattled financial markets and raised fears of a recession, with central bankers and business leaders grappling with often chaotic policymaking that is hitting global supply chains and a host of industries. (A2 Televizion)
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