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UK Trade Deal Takes Backseat in Trump’s Agenda

The Trump administration has relegated a potential US-UK trade agreement to secondary status, dealing a significant blow to British negotiators. Multiple sources confirm Washington has categorized trade talks into three tiers with Britain notably absent from the top-priority group currently focused on Asian partners.

America First approach sidelines UK as the White House prioritizes negotiations with South Korea, Japan, and India. Treasury Secretary Scott Bessent praised these nations as “most cooperative” in recent remarks, while suggesting European countries including Britain face tougher negotiations due to longstanding trade disputes.

The development comes as UK officials scramble to finalize separate agreements with the EU and India. While making progress on these fronts, British negotiators now face complications with Washington, particularly regarding agricultural standards. The Trump administration continues pushing for UK concessions on food imports a non-starter for Britain’s Labour government.

America First strategy creates hurdles for transatlantic trade. The UK’s compromise proposal reducing digital service taxes affecting US tech giants in exchange for tariff relief on manufactured goods has gained little traction. Insiders describe the negotiation process as “disjointed,” with the White House setting a July 8 deadline that extends beyond Britain’s preferred timeline.

Parallel trade discussions reveal mixed progress. UK-India negotiations stalled this week over pension contribution requirements for temporary workers, potentially requiring Prime Minister Starmer’s personal intervention. Meanwhile, EU talks show more promise, with Brussels offering modified terms on youth mobility programs.

Trade analysts see growing complications. “Britain’s attempt to align with EU product standards directly conflicts with US demands,” noted Georgetown University trade professor Mark Warner. “This isn’t just about tariffs it’s a fundamental clash of regulatory philosophies.”

The America First prioritization leaves UK officials in a difficult position. With Washington focused on Pacific partnerships and maintaining tough stances toward Europe, Britain’s hopes for a comprehensive US trade deal appear increasingly unlikely before the November election.

The situation highlights broader challenges in post-Brexit trade diplomacy. As global economic alliances shift, Britain finds itself caught between American unilateralism and European integration with diminishing room to maneuver.

Industry watchers suggest the UK may need to wait for a potential second Trump administration or different leadership altogether before making meaningful progress on this key economic priority.

For the latest on international trade developments, stay with DC Brief.

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