Britain is said to be days away from to securing a trade deal with the US which would lessen the impact of Donald Trump’s tariffs.
The UK has been in talks with the Trump administration as part of an attempt to agree a carve out from tariffs, which are wreaking havoc on the global economy.
Trade negotiators have returned to Washington this week and officials told the Financial Times that the trade deal could be agreed in the next few days.
It could include quotas that would exempt a certain number of UK exports from the full impact of 25 per cent tariffs on the British car and steel industry.
In exchange, the officials claimed that the UK has offered concessions on Britain’s digital services tax, which hits major US tech firms including Meta and Amazon. The 2 per cent levy, which was introduced in 2020, raises about £800m a year for the UK.
The UK government is also said to have offered concessions on tariffs on US car exports, as well as a reduction of levies on American agricultural products.
But ministers have repeatedly insisted it will not compromise on food production standards, meaning it is unlikely to compromise on imports of chlorine-washed chicken and hormone-treated beef.
It comes just a day after US treasury secretary Scott Bessent said some trade deals – which the US is looking at signing with as many as 17 countries – could be announced “perhaps as early as this week”.
He said several countries have so far made “good offers” to the US, but declined to provide further details.
Any compromise on the digital services tax is likely to spark backlash, with Labour MPs last month warning the government to avoid a “dash to let the US tech companies off the hook”.
Left-wing Labour MP Rachael Maskell said she would be “concerned if relief was granted” to US tech firms while disabled people in the UK “pay for the revenue loss” through welfare cuts.
Meanwhile, Labour MP for Norwich South, Clive Lewis, added: “This was entirely predictable given how desperate the government is to appease the Trump administration and tech oligarchs around it.
“This is extractive politics at it worst and exactly the kind of deal the Maga [Make America Great Again movement] wants. Rather than move closer to Europe and stand together we’re allowing ourselves to be ripped off.”
On Tuesday, the UK unveiled a £25bn trade agreement with India, which has lowered tariffs on UK exports including whisky, gin and cars as well as imports of clothing from India.
The government said the deal is estimated to add £4.8 billion to GDP per year from 2040.
But ministers were forced to deny the agreement undercuts British workers, after opposition politicians criticised part of the deal that exempts some temporary Indian workers from national insurance payments.
On Wednesday, Jonathan Reynolds described the claim as “completely false”, telling the BBC: “There is no situation where I would ever tolerate British workers being undercut through any trade agreement we would sign. That is not part of the deal.”
A government spokesperson said: “The US is an indispensable ally and talks on an economic deal between the US and the UK are ongoing – but we are not going to provide a running commentary on the details of live discussions or set any timelines.
“We will continue to take a calm and steady approach to talks and aim to find a resolution to help ease the pressure on UK businesses and consumers.”
