Donald Trump revealed he has struck a huge trade deal with the United Kingdom, the first such agreement since he launched a global trade blitz last month.
The president promised many more deals would follow with other countries after his ‘Liberation Day’ tariffs sent the world economy into a tailspin.
It means Trump is handing a big political victory to a key ally, UK Prime Minister Keir Starmer, who has been negotiating behind the scenes with the White House for weeks.
The U.S. stock market moved higher in morning trading in New York when Wall Street opened at 9:30 a.m. – but far from soared as some were hoping.
The benchmark S&P 500, which tracks America’s biggest companies, was up as much as 0.5 percent. But Wall Street will be watching for more movements after more details of the deal are unveiled in the official announcement.
‘The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,’ Trump wrote on his Truth Social early Thursday morning.
He added: ‘Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!’
Trump had teased Wednesday evening that he would be making a major announcement at 10am in the Oval Office.
Starmer is not traveling to Washington, D.C. for the announcement and will instead hold a press conference in the West Midlands of Britain.
Donald Trump revealed early Thursday morning that his first big trade deal since Liberation Day is with the United Kingdom
Sir Keir Starmer speaking at the London Defence Conference at Bush House in London
A UK official said on Tuesday that the two countries had made good progress on a trade deal that would likely include lower tariff quotas on steel and cars.
Prime Minister Keir Starmer has been rushing to seal a pact with America before his big Brexit ‘reset’, due to be unveiled at a summit with the European Union on May 19.
It is the second big win for Starmer this week after he also sealed a trade pact with India on Tuesday.
According to the Financial Times, the pact with the US includes quotas that could protect UK exports of automobiles and steel, as well as reductions in headline tariff rates.
In return, the UK is expected to make concessions for US companies on a new ‘digital tax’, as well as lower tariffs on US cars and farming products.
Stock futures in the U.S. were up over night but have fallen slightly since Trump’s news broke around 6:30 a.m.
Still, the markets and all major indices are expected to open with a bump after a month of volatility and downturn.
Trump’s top officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10 percent tariff on most countries, along with higher ‘reciprocal’ tariff rates for many trading partners.
He later suspended those rates from taking effect for 90 days amid an international meltdown and stock market crash.
Britain was not among the countries hit with additional tariffs since the UK imports more from the U.S. than it exports there.
Trump imposed 25 percent tariffs on cars, steel and aluminum, as well as a 25 percent tariffs on all goods from Canada and Mexico, and whopping 145 percent tariffs on China – making it nearly impossible for the CCP to trade with the U.S.
Trump’s top officials have engaged in a flurry of meetings with trading partners since Liberation Day
According to the Financial Times, the package on the table includes quotas that could protect UK exports of cars and steel, as well as reductions in the headline rates
On Tuesday, Trump said he and top administration officials would review potential trade deals over the next two weeks to decide which ones had acceptable terms.
Last week, the president said he has ‘potential’ trade deals worked out with India, South Korea and Japan.
He also raised the prospect of a transatlantic trade deal when Trump met with Starmer at the White House in February – before the president unveiled his ‘Liberation Day’ tariff barrage.
Hopes have dwindled of the United Kingdom getting an exemption from the ‘baseline’ 10 percent charges on goods entering America.
Starmer has ruled out several concessions the U.S. was thought to be considering as the price of a deal with Britain.
Trump said Wednesday he would ‘think about’ tariff exemptions for child-related products like car seats and diapers in order to bring the cost of them down.
Tariffs on China are hitting American parents hard in their wallets.
Virtually every car seat, stroller, bassinet and changing table sold in the U.S. is made in China.
Trump said Wednesday he would ‘think about’ tariff exemptions for child-related products like car seats and diapers in order to bring the cost of them down
Since Trump doubled Chinese tariffs, the prices of these items are set to increase even more.
When asked about considering exemptions for childcare products in the tariffs, Trump said: ‘I don’t know. I’ll think about it.’
‘I want to make it nice and simple,’ Trump told reporters in the Oval Office. ‘I’m not looking to have so many exemptions that nobody knows what we’re doing. We have to make it very simple but I’ll take a look at it.’
The president’s comments came as investors anxiously await planned trade talks between Washington and Beijing on Saturday, which could mark the first step in resolving a potentially damaging trade war between the world’s top two economies.
