Theresa May, pictured holding a Cabinet meeting in Runcorn today, has confirmed she will meet new US President Donald Trump for talks on Friday

Trade tariffs between the US and UK could be slashed and workers will be free to move more freely, under plans set to be discussed by Theresa May and Donald Trump this week.

The outline of an historic trade deal will be one of the main topics when the PM meets the new commander-in-chief in Washington.

Mrs May has scored a major coup by getting the first invite to the White House since the billionaire tycoon was installed as President.

She hailed the prospects for closer links with the US yesterday - making clear that she is keen to build on the new administration's desire for a trade deal.

But Mrs May also said she 'won't be afraid' to challenge Mr Trump's views when she finds them 'unacceptable'.

Downing Street is desperate to make quick progress on an agreement with the US - which would be a shining symbol that the UK is still open for business after the Brexit vote.

Mr Trump's enthusiasm for a deal has dramatically strengthened Mrs May's hand in the looming negotiations with the EU.

New arrangements could see tariffs slashed on existing imports and exports between the US and UK.

Restrictions could also be eased on Britons who want to work in the US and vice-versa, Whitehall sources told the Daily Telegraph.

In an appearance on the BBC's Andrew Marr show yesterday, Mrs May said she looked forward to welcoming Mr Trump for a reciprocal visit to Britain 'sometime this year' - but said invitations for state visits are decided by Buckingham Palace.

Mrs May will use Friday's meeting to urge Mr Trump to maintain free trade with the rest of the world - amid signs he could take a more isolationist approach than his predecessor.

She has also promised to stress the importance of Nato - which the president has suggested is 'obselete'.

She said she will reiterate the importance of the military alliance and press him to continue America's support to help protect Baltic states against Russian aggression.

But Ted Malloch, a close Trump adviser who is tipped to be his choice for the US ambassador to the EU, said the President will pursue a radical shake-up of Nato.

THERESA MAY VOWS TO CONFRONT TRUMP ON NATO Theresa May, pictured arriving at the BBC in London today, insisted she 'won't be afraid' to challenge Trump's 'unacceptable' views but said the focus of their meeting later this week will be on trade, Nato and Russia Theresa May will tell Donald Trump he must recognise the value of Nato when she becomes the first world leader to meet the new US President on Friday. She vowed to press the US President to commit to continued US support for the mutual defence alliance. He has previously branded Nato 'obsolete' and in a sign that he intends to keep to his 'America First' strategy one of his close advisers said today that the new US administration will pursue a radical shake-up of the organisation. In the latest attack on Nato from Team Trump , Ted Malloch, tipped to be the next US ambassador to the EU, suggested there would be more 'burden sharing' in the military alliance. Asked about President Trump's stance on Nato now he has entered the White House, Mr Malloch told the BBC: 'I think that the institutions will be recreated. 'Some of them may be taken down, there may be some new ones. 'I think Nato itself and certainly the defence secretary will have discussions with Donald Trump about how Nato can be reformed and reshaped and maybe there'll be more burden sharing. That's an important thing for Mr Trump.' Mrs May said she would confront Mr Trump on his opposition to Nato and urge him to make clear that America stands ready to defend the Baltic states in the event of Russian aggression. She will tell him that Britain is committed to spending a minimum of 2 per cent of national income on defence until at least the 2020 General Election and will pledge to press other Nato members to 'step up to the plate and pay their way'. Mrs May told the Andrew Marr Show today: 'I've spoken to him about Nato - Nato is very important, Nato has been the bulwark of our security here in Europe and we work together in Nato. 'We've both made the point before about contributions being made by countries, the United Kingdom is spending 2 per cent of its GDP on defence, I believe that's important.' She added: 'What is important is that we recognise the value of Nato, which he does, the value of Nato as an organisation that is helping us to defend Europe and defend the interests of all of those allies who are in Nato.' Advertisement

Mrs May refused to say whether she will use Friday's meeting to bring up his controversial comments about women, but she told the BBC: 'I will be talking to Donald Trump about the issues that we share - it's the special relationship that enables us to say when we think things are unacceptable.'

'Whenever there is something that I find unacceptable I won't be afraid to say that to President Trump,' she added.

She insisted that being a female Prime Minister and the first foreign leader to meet Mr Trump since his inauguration will be the 'biggest statement' she can make about the role of women in the world.

Mrs May's promise to stand up for women's rights during the Trump presidency comes after a weekend in which hundreds of thousands of people around the world joined women's marches to protest against Mr Trump.

An estimated 500,000 people joined the 'pink pussy hat' march in Washington and 100,000 marched in London yesterday.

In October Mrs May hit out at revelations that Mr Trump had boasted that his fame allowed him to 'do anything' to women - such as 'grabbing them by the pussy'.

She said his comments were 'unacceptable'.

Mrs May also lashed out at Mr Trump over his pledge at the end of 2015 to ban Muslims from entering the US and branded him 'plain wrong' after he claimed police in London were afraid to go out and police the streets of London.

She said yesterday: 'I have already said that some of the comments that Donald Trump has made in relation to women are unacceptable, some of those he himself has apologised for.

'When I sit down I think the biggest statement that will be made about the role of women is the fact that I will be there as a female Prime Minister, Prime Minister of the United Kingdom, directly taking to him about the interests that we share.'

The PM highlighted her 'track record' in defending the interests of women, including moves to tackle modern slavery and domestic violence while home secretary.

She said she will use Friday's meeting with Mr Trump as an 'opportunity to talk about trade, world challenges, defeating terrorism and conflict in Syria'.

The Prime Minister, who was the tenth world leader to be phoned by Mr Trump after his election, was due to meet him in February but will now fly out this week.

Mr Trump has said he hopes their co-operation will match the friendship between Ronald Reagan and Margaret Thatcher in the 1980s.

He is said to refer to Mrs May as 'my new Maggie'.

Mr Trump will also invite Mrs May to unveil a statue of Sir Winston Churchill which he has returned to the Oval Office after Barack Obama removed it.

The PM has said she is 'confident' of striking a deal and has suggested the UK and US could even reduce barriers to trade before being able to sign a formal agreement after Brexit.

She insisted Mr Trump was looking for 'early' talks on a UK-US free trade deal despite his 'America first' strategy sparking concerns that he would not be willing to reach an agreement.

'He and people around him have also spoken of the importance of a trade arrangement with the United Kingdom and that is something they are looking to talk to us about at an early stage, and I would expect to be able to talk to him about that alongside the other issues I will be discussing with him when I am in Washington,' she said.

Donald Trump is sworn in as the 45th president of the United States by Chief Justice John Roberts

The PM told the Cabinet about the government's industrial strategy during a meeting in the North West today

Mrs May has also spoken of reducing barriers to trade before a formal deal can be reached after Brexit, amid reports of potential moves to set up a 'passporting' system for transatlantic banking.

One of the items said to be on the agenda is a possible 'passporting deal' which would allow British and American firms to set up and trade in each other's countries with minimum regulatory hurdles.

And Mrs May defended Mr Trump's widely criticised 'America first' message: 'If you think about it, any leader, any government, as we do here in the United Kingdom when we look at any issue, we ensure that we're putting the UK's interests and the interests of British people first.'

The Prime Minister insisted Mr Trump was committed to Nato despite worries that he has consistently undermined the mutual defence alliance at a time of Russian aggression.

At their meeting, the pair could agree a statement emphasising their commitment to spending at least 2 per cent of GDP on defence and urging other Nato countries to match them, according to reports.

In a major victory for No 10 Theresa May, pictured on the Andrew Marr Show yesterday, will be the first world leader to visit President Trump in the White House and they will meet less than a week after his inauguration

Mrs May said: 'I've spoken to him about Nato - Nato is very important, Nato has been the bulwark of our security here in Europe and we work together in Nato,' she said.

'We've both made the point before about contributions being made by countries, the United Kingdom is spending 2 per cent of its GDP on defence, I believe that's important.'

She added: 'What is important is that we recognise the value of Nato, which he does, the value of Nato as an organisation that is helping us to defend Europe and defend the interests of all of those allies who are in Nato.'

Mrs May also suggested her visit would be followed by a state visit by Mr Trump to Britain this year, which would include an audience with the Queen and the pomp and pageantry of which the President seems so fond.

'I would look forward to welcoming President Trump here to the United Kingdom sometime this year if that's possible but of course in terms of state visits that's a matter for Buckingham Palace and they haven't announced the visits this year yet,' she said.

In his inauguration speech, President Trump, whose mother is Scottish, pledged to 'reinforce old alliances' in a sign that Britain's special relationship with the US could be boosted under the new regime.

Nigel Farage, pictured at a Trump inauguration party in Washington on Thursday, praised Donald Trump's speech and declared a new era for US-UK relations

Meanwhile, there is speculation that Nigel Farage could become a member of Trump's team.

Phil Bryant, Governor of Mississippi, revealed at a party thrown by Farage that the former UKIP leader will be made a 'close but unofficial adviser' to the new President, reported the Telegraph.

Mr Bryant said: 'There is an opportunity for him to work directly with the president, we call it "close but unofficial".'

On Friday Farage praised Donald Trump's inauguration speech and declared a new era for US-UK relations.

He told MailOnline it was a 'great speech and good for the UK'.

Mr Trump's mention of 'old alliances' was interpreted as a reference to the 'special relationship' between the US and the UK, which critics claimed Barack Obama undermined during his eight years in office.

After Trump's speech, May said: 'I congratulate President Trump on taking office today.

'From our conversations to date, I know we are both committed to advancing the special relationship between our two countries and working together for the prosperity and security of people on both sides of the Atlantic.

'I look forward to discussing these issues and more when we meet in Washington.'