US, UK to announce trade deal, New York Times reports

He did not offer more details but said it would be the "first of many".

A White House spokesperson declined to comment on the Times report.

Sterling jumped against the dollar after the news. A deal would be the second for Britain in a week after it clinched a free trade pact with India.

A UK official on Tuesday said Britain and the United States had made good progress on a trade deal that would likely include lower tariff quotas on steel and autos.

Britain is also in "active discussions" with top US officials over the 100 per cent tariff on all movies produced outside the US announced by Trump, creative industries minister Chris Bryant told parliament on Wednesday.

The news of a US-UK trade deal comes as US and Chinese officials prepare to hold talks in Switzerland on Saturday, which could mark the first step in resolving a potentially damaging trade war between the world's top two economies.

Trump's trade war has shaken up financial markets and raised fears of a recession, with central bankers and business executives wrestling with often chaotic policymaking that is rippling through world supply chains and a whole host of industries.

Trump's top officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10 per cent tariff on most countries, along with higher "reciprocal" tariff rates for many trading partners, though those rates were later suspended for 90 days.

Britain was not among the countries hit with additional tariffs, because it imports more from the US than it exports there.

Trump has also imposed 25 per cent tariffs on automobiles, steel and aluminium, 25 per cent tariffs on Canada and Mexico, and 145 per cent tariffs on China.

On Tuesday, Trump said that he and top administration officials would review potential trade deals over the next two weeks to decide which ones to accept.

Last week, he said he has"potential" trade deals with India, South Korea and Japan.