Progress toward reducing trade barriers has been made but uncertainty from U.S. trade policy will lead to weaker growth and continued lower inflation in the U.K., Lombardelli said.

"Today’s announcement is a positive step that will allow some trade between the two countries to resume," said U.S.-China Business Council President Sean Stein

The deal still has to be finalized, but it was hailed as a success by both countries for being the first since President Trump announced broad tariffs in April.

The EU is weighing a temporary return to its pre-war trade agreement with Ukraine if a renegotiated deal is not ready to take effect when war-related tariff suspensions expire on June 5, EU diplomats said on Wednesday.

When President Trump ended a tariff exemption for small packages from China and Hong Kong, e-commerce companies Shein and Temu lost a big advantage as they became exposed to Trump’s new sky-hig