MPs have called for the Government to maximise pressure on the US to secure relief from tariffs ahead of Donald Trump’s state visit.

The Commons Business and Trade Committee said the visit next week is the moment to put pressure on the US president to agree to the final terms of the so-called economic prosperity deal.

The UK and US signed a trade deal in June that reduced tariffs on car and aerospace imports to the US, but failed to agree on terms for British steel, leaving tariffs on it at 25%.

In a report on the deal, the committee welcomed the Government securing swift tariff relief for key sectors.

“It is however now vital that Government maximises pressure on the United States — beginning and following the president’s state visit — to agree final terms for a lasting economic prosperity deal to end the threat of future sectoral tariffs, maximise predictability and that where the UK has secured terms which are second best to the EU, we aim to improve them,” they said.

Committee chairman Liam Byrne MP said the state visit is “no mere pageant”.

He said: “It is a test of whether Britain and America build a safer, richer future – or remain trapped in tariff fights that serve neither nation well. Sir Keir Starmer deserves credit for securing the economic prosperity deal.

“But we can’t escape the truth that Britain now trades with its biggest partner on terms that are worse than the past, the EU has in places secured a better edge, and key sectors of our economy still face the peril of new tariffs. That means jobs hang in the balance and investment waits on certainty.”

The committee also urged the Government to seal a deal on aluminium and pharmaceuticals and for any final agreement to reflect the realities of the UK’s supply chains and transition to low-carbon production.

It said the UK should leverage the US partnership to gain an edge over China in artificial intelligence and defence technology, de-risked supply chains and greater security for critical minerals supplies.

“Britain’s science, AI and the City of London, joined with America’s tech giants and venture markets, could set the standards of this century and help secure western leadership over China for decades to come,” Mr Byrne said.

“But that means we have got to turn paper promises into a binding bargain that ends the tariff tempest that is battering British exporters and investors.”

It comes as US financial firms have announced investments in the UK worth £1.25 billion before Mr Trump’s state visit.

Citi Group has confirmed it will invest £1.1 billion across its UK operations, while S&P Global will put £4 million into its Manchester offices.

PayPal has confirmed a £150 million investment in product innovations and growth and Bank of America will create up to 1,000 new jobs in Belfast in its first operation in Northern Ireland.

Alongside the new investment announcements, companies are committing to ramp up commercial activity between the US and UK in the coming years.

Blackrock is allocating £7 billion to the UK market over five years, while Rothesay is planning to double its investment in the US with another £7 billion in the coming years.

The investment and capital commitments line up some £20 billion trade between the two countries – with some £8 billion to come to the UK and £12 billion to go to the US, the Department for Business and Trade said.

Business and Trade Secretary Peter Kyle said: “These investments reflect the strength of our enduring ‘golden corridor’ with one of our closest trading partners, ahead of the US presidential state visit.”

Tech giants OpenAI and Nvidia are reportedly planning to unveil billions of dollars of investment into UK data centres during the visit next week.

Sam Altman, the boss of ChatGPT-maker OpenAI, and chipmaker Nvidia’s chief executive Jensen Huang are understood to be part of a delegation of US executives to join Mr Trump.

The US president’s two-day trip begins on Wednesday and includes an overnight stay at Windsor Castle.

A Government spokesperson said: “Our special relationship with the US remains strong.

“Thanks to our trade deal, the UK is still the only country to have avoided 50% steel and aluminium tariffs, and we continue to partner on technologies such as AI, quantum, and cyber security in our trillion-dollar tech sectors.

“We will work with the US to implement this landmark deal as soon as possible to give industry the security they need, protect vital jobs, and put more money in people’s pockets through the plan for change, as well as welcoming the president on this historic state visit.”

US financial firms have announced investments in the UK worth £1.25 billion before Donald Trump’s state visit next week.

Citi Group has confirmed it will invest £1.1 billion across its UK operations, while S&P Global will put £4 million into their Manchester offices.

PayPal has confirmed a £150 million investment in product innovations and growth and Bank of America will create up to 1,000 new jobs in Belfast in its first operation in Northern Ireland.

Alongside the new investment announcements, companies are committing to ramp up commercial activity between the US and UK in the coming years.

Blackrock is allocating £7 billion to the UK market over five years, while Rothesay is planning to double its investment in the US with another £7 billion in the coming years.

The investment and capital commitments line up some £20 billion trade between the two countries – with some £8 billion to come to the UK and £12 billion to go to the US, the Department for Business and Trade said.

Business and Trade Secretary Peter Kyle said: “These investments reflect the strength of our enduring ‘golden corridor’ with one of our closest trading partners, ahead of the US presidential state visit.”

Tech giants OpenAI and Nvidia are reportedly planning to unveil billions of dollars of investment into UK data centres during the visit next week.

Sam Altman, the boss of ChatGPT maker OpenAI, and chipmaker Nvidia’s chief executive Jensen Huang are understood to be part of a delegation of US executives to join Mr Trump.

The US president’s two-day trip begins on Wednesday and includes an overnight stay at Windsor Castle.

It comes as the future of tariffs on British steel is still unclear.

When the UK and US signed a trade deal in June, it reduced tariffs on car and aerospace imports to the US.

But no agreement on a similar arrangement for Britain’s steel imports was reached, leaving tariffs on steel at 25%.

A Government spokesperson said: “Our special relationship with the US remains strong.

“Thanks to our trade deal, the UK is still the only country to have avoided 50% steel and aluminium tariffs, and we continue to partner on technologies such as AI, Quantum, and cyber security in our trillion-dollar tech sectors.

“We will work with the US to implement this landmark deal as soon as possible to give industry the security they need, protect vital jobs, and put more money in people’s pockets through the plan for change, as well as welcoming the president on this historic state visit.”

The Central Board of Indirect Taxes and Customs (CBIC) clarified that post-sale discounts offered by manufacturers to dealers, aimed purely at competitive pricing and driving sales, will not attract Goods and Services Tax (GST).In a circular, the board further explained that GST would, however, apply if such discounts are linked to specific promotional services carried out by dealers on behalf of the manufacturer, such as co-branding initiatives, advertising campaigns or customised sales drives.The clarification follows multiple representations received by the CBIC on the treatment of secondary or post-sale discounts under GST, PTI reported.According to the circular, dealers may sometimes engage in promotional efforts after receiving discounts, but these actions usually help them sell the goods they own and, in turn, increase their own earnings. In such situations, the board said, the discount functions only as a reduction in the sale price of goods rather than as consideration for a separate service.“Therefore, it is clarified that post-sale discounts offered by manufacturers to dealers in such cases shall not be treated as consideration for a separate transaction of supply of services,” the CBIC circular stated.The tax will only apply, the board noted, if agreements explicitly state that dealers will perform promotional services like exhibitions, customised campaigns, advertising or customer support, with a defined payment for such activities.Commenting on the circular, AMRG & Associates senior partner Rajat Mohan pointed out that while dealers often run small marketing campaigns or quick sales drives, such efforts are usually undertaken to boost their own sales volumes.“The government has rightly clarified that these routine trade discounts cannot be treated as payment for any service provided by the dealer to the manufacturer, and therefore no additional GST liability arises in such cases,” Mohan was quoted as saying by PTI.EY tax partner Saurabh Agarwal said the clarification rightly differentiates between a straightforward trade discount and a service transaction. He added that the position confirms that where the manufacturer-dealer relationship is on a principal-to-principal basis, discounts meant purely for sales promotion or competitive pricing cannot be viewed as payment for services.He also stressed that this move addresses a major source of confusion. “In light of these clarifications, businesses must revisit their contractual arrangements and tax positions. The government’s clear demarcation between trade discounts and promotional services will significantly reduce interpretational disputes and provide greater certainty in compliance for the industry, paving the way for a more streamlined GST regime,” Agarwal told PTI.Grant Thornton Bharat partner Manoj Mishra noted that the CBIC’s guidance resolves a long-standing dispute. He highlighted that the assurance on input tax credit, which remains unaffected when financial or commercial credit notes are issued, eliminates a significant compliance risk for dealers.“From a practical standpoint, this puts the onus on businesses to carefully document agreements, credit notes, and customer-level pricing arrangements.”“Overall, the clarification is a pragmatic move that strengthens certainty, reduces litigation, and provides a workable framework for industry,” Mishra said.