Newsman: The US-UK agreement is the first deal since Trump imposed sweeping tariffs in April, igniting a global trade war and rattling financial markets. President Donald Trump touted a “tremendous trade deal” between the U.S. and United Kingdom as he discussed the first agreement since he imposed sweeping tariffs in April that ignited a global trade war and rattled financial markets.
“I’m thrilled to announce that we have reached a breakthrough trade deal with the United Kingdom,” Trump said May 8 from the Oval Office, noting that the agreement happened to fall on “Victory Day” in celebration of the end of World War II in Europe. “There could be no more perfect morning to reach this historic agreement.”
Final details are still in the works, though U.S. stocks traded higher in the immediate hours of the news spreading of a broad deal between the two longstanding global allies. Surrounded by U.S. and UK officials who helped broker the agreement, Trump promised that their efforts would provide billions of dollars in access for U.S. agricultural products such as beef and ethanol.
“They’re opening up their country,” Trump said. “Their country is a little closed and we appreciate it.”
United Kingdom Prime Minister Keri Starmer was put on a speaker phone for the announcement and called it a “really fantastic, historic day” coinciding with the 80th anniversary of the key moment at the end of World War II.
“This is going to boost trade between and across our countries,” Starmer siad.
Trump had imposed reciprocal tariffs on a slew of countries April 2 but later paused most of them for 90 days, saying those nations’ leaders were eager to negotiate trade deals. Since then administration officials repeatedly have said they are close to making deals.
The UK wasn’t hit with a reciprocal tariff during Trump’s April roll out, but faced a 10% universal tariff and 25% tariffs that Trump imposed on foreign automobiles, steel and aluminum.
President Trump said he made a special exception for the United Kingdom by lowering auto tariffs from 25% to 10% to help high-end vehicles such as Rolls-Royce, Bentley and Jaguar vehicles that are manufactured in Britain.
“It’s a very special car, and it’s very limited number, too,” Trump said. “It’s not one of the monster car companies that makes millions of cars. They make a very small number of cars that are super luxury.”
“That’s really handmade stuff, they’ve been doing it for a long time in the same location,” he said. “So I said, ‘Let’s help the out with that one.’”
Trump said he will “rarely” make the same decision in negotiations with other countries when it comes to other foreign automobiles.
Trump says 10% tariff could still increase for other countries
Trump’s trade deal with the United Kingdom maintained a 10% universal tariff on the country.
Asked if trade deals with other countries also could result in tariffs staying at 10%, rather than the higher reciprocal tariffs the president threatened last month before pausing most of them, Trump said no.
