Politics
JUST IN: Trump Secures Massive Tariff Deal With The U.K.
The White House has revealed that its second trade deal will be made with the United Kingdom, news that sent markets into positive territory Thursday morning.
President Donald Trump took a victory lap, writing on Truth Social, “This should be a very big and exciting day for the United States of America and the United Kingdom.”
A press conference is expected to take place in the Oval Office at 10 a.m. EST, according to Trump.
“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. 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!” he added.
“The Golden Age of America is coming!”
The New York Times, citing three people familiar with the announcement, first reported that the deal will be with the U.K.
Since April 5, the U.K. economy has borne the brunt of a 10% reciprocal tariff by the U.S. on imports. Classic British automobile brands like Jaguar and Aston Martin have been slapped with 25% surcharges on foreign vehicles, leading to a significant slump in Land Rover sales, according to Autoblog.
Prior to then, trade between both nations was relatively robust. Most U.K. imports were assessed tariffs ranging from none to 2.5%, with higher rates reserved for specific products like steel, aluminum, or automobiles, Fox Business reports.
However, the U.K. placed higher tariffs on U.S.-made goods according to the United Nations’ designation of the U.S. as a “Most Favored Nation” — one that President Trump has especially criticized as hostile and unfair, given Americans’ large volume of consumption for global products.
The pressure of international trade deals has set off a frenzy to reach new trade agreements with the Trump administration, and Thursday’s announcement comes after the White House has clinched a free trade pact with India.
A U.K. official confirmed to the outlet on Tuesday that good progress has been made on setting lower tariff quotas on steel and autos.
The announcement puts wind at Trump’s back as members of his administration prepare to meet with Chinese counterparts in Switzerland for high-level trade talks between the top two global economies. U.S. Treasury Secretary Scott Bessent has maintained that China is crumbling under the pressure of 145% tariffs that have been in place since early April, and if they remain much longer, the Chinese economy may shed anywhere from five to 10 million domestic jobs.
