Trump Makes Trade Deal with UK Second Order Priority in Blow to British Negotiators

Donald Trump’s administration has reportedly relegated a potential UK-US trade deal to a lower priority, casting doubt over Britain’s ambitions to finalise such an agreement within weeks. Sources familiar with the negotiations have indicated that the United States has divided trade discussions with over a dozen nations into three phases. The UK, according to US officials, has not been placed in the first phase of talks and is likely part of the second or third grouping.

British negotiators had hoped to reach a deal with the United States by mid-May, following progress in trade negotiations with the European Union and India. However, this delay leaves British officials concerned that a comprehensive agreement with the EU may limit flexibility in their discussions with American counterparts. The Trump administration has been vocal about its dissatisfaction with European trade policies, intensifying British concerns about balancing trade relationships across the Atlantic.

The British government has remained committed to ongoing economic discussions with the United States, framing the transatlantic partnership as vital. A government spokesperson reiterated that escalating tariff disputes is not in anyone’s interest and negotiations will continue despite current setbacks. Nonetheless, differing policy priorities appear to limit immediate progress. US officials have pressed the UK to lower its food quality standards to permit imports of American beef and chicken, a demand firmly opposed by the Labour government.

The draft proposal prepared by the UK offered concessions, including a reduction in the digital services tax, which primarily affects American tech companies. This was designed to attract lower tariffs on British steel, aluminium, and automobiles. Rachel Reeves, the Chancellor, has floated the idea of reducing the 10 percent tariff on American vehicles as an additional offer. Despite these efforts, the American government has chosen to prioritise negotiations with Asian countries, particularly South Korea, India and Japan, further delaying UK-US talks.

US Treasury Secretary Scott Bessent has publicly stated that Asian economies have been more forthcoming in trade discussions. He has also criticised European countries for their implementation of digital services taxes and called for their removal. British negotiators have expressed a willingness to adjust these taxes but have refused to eliminate them entirely. Analysts highlight that Britain’s agricultural standards, closely integrated with European regulations, create additional hurdles to meeting US demands, further complicating transatlantic trade arrangements.

Although Trump’s administration proposes an extended timeline for concluding talks, British officials remain optimistic about informal discussions continuing into early summer. Simultaneously, the UK is making stronger progress in negotiations with India and the European Union. Talks with Indian officials recently centred around the removal of national insurance contributions for Indian business visa holders, with diplomats suggesting that just one key issue remains unresolved.

Regarding European discussions, British ministers have engaged closely with EU trade leaders. Reports suggest compromises on youth mobility schemes and work visas could see an agreement materialise soon, though these proposals would hinder Britain’s ability to provide similar regulatory concessions to the United States. Experts emphasise the difficulty of navigating conflicting demands from major trade partners but suggest strategic gains could still be achieved through persistent negotiation.