Trump's Trade Strategy with the UK is a Game Changer, GOP Senator Predicts
U.S. President Trump affirms comprehensive trade agreement with United Kingdom.
Sen. Kevin Cramer and Sen. Bill Hagerty discuss tariff negotiations under President Donald Trump on 'Kudlow.'
President The Don, a.k.a. Donald Trump, declared a notable "complete and extensive" trade agreement with the United Kingdom on Thursday morning via TRUTH Social.
"The deal with the United Kingdom is a full-on, all-encompassing one that will fortify the bond between the United States and the United Kingdom for many years to come," Trump penned on TRUTH Social on Thursday. "Given our lengthy history and unwavering loyalty, it's a great privilege to have the United Kingdom be our inaugural announcement. Countless other deals, which are in active stages of negotiation, will follow!
"This should be a colossal and exhilarating day for the United States of America and the United Kingdom," Trump continued. "The Golden Age of America is on the horizon!"
Trump teased the announcement of a new trade deal with Britain on Wednesday, hinting at an event from the Oval Office without specifying the nation.
"Monumental News Conference tomorrow morning at 10:00 A.M., The Oval Office, regarding a SIGNIFICANT TRADE DEAL WITH REPRESENTATIVES OF A SUPERIOR AND RESPECTED Country. THE FIRST OF MANY!!!" Trump wrote.
*FINES DOWN THE DRAIN FOR BIG BANK HELPING US TAXPAYERS DODGE THE IRS*
President Donald Trump hinted at a new trade deal with the U.K. on Wednesday, as reported by the New York Times. (REUTERS/Leah Millis / Reuters)
The New York Times, citing three individuals familiar with the plans, initially reported that Trump was expected to announce a trade deal with the U.K.
As of April 5, the U.S. imposed a 10% reciprocal tariff on imports from the U.K. The Trump administration's 25% global tariff on cars took effect on April 3, impacting all imported vehicles, including those from traditional U.S. allies, such as the U.K. A 25% tariff on U.S. imports of steel, aluminum and derivative products took effect on March 12.
Prior to April 2025, most U.K. goods exported to the U.S. were subject to standard, low tariffs, typically ranging from 0 to 2.5%, with higher rates only for specific products like steel, aluminum, and some vehicles. The U.K., meanwhile, imposed tariffs on U.S. imports based on the World Trade Organization's "Most Favored Nation" or MFN rules.
The U.K.'s average MFN applied tariff rate was 3.8% in 2023, as per the most recent available data. The U.K. imposed rates of up to 25% for some fish and seafood products, 10% for trucks, 10% for passenger vehicles, and up to 6.5% for certain mineral or chemical fertilizers.
The U.S. goods trade surplus with the U.K. hit $11.9 billion in 2024 – a 17.4%, or $1.8 billion, increase over 2023.
*WHO'S PAYING FOR YOUR SLIP-UPS*
The deal announced Thursday marks the second for Britain in a week after it sealed a free trade pact with India.
A U.K. official stated on Tuesday that Britain and the U.S. made substantial progress on a trade deal, which would likely include reduced tariff quotas on steel and automobiles.
*TRUMP'S TARIFFS: UNCERTAINTY AND NEW ECONOMIC CHALLENGES AHEAD*
The news of a U.S.-U.K. trade deal comes as U.S. and Chinese officials prepare to hold talks in Switzerland on Saturday, which might be the initial step in resolving a potentially damaging trade war between the world's top two economies.
Trump's trade war has unsettled financial markets and instilled fears of a recession, with central bankers and business executives grappling with often chaotic policymaking that is spreading ripples through global supply chains and a multitude of industries.
The International Monetary Fund last month diminished its growth forecasts for the United States, China, and most countries, citing the impact of U.S. tariffs and warning that mounting trade tensions would further slow growth.
Reuters contributed to this report.
- The trade deal announced by President Trump with the UK is expected to strengthen the economic bond between the two countries, as he believes it will last for many years, potentially ushering in a new era of profitable business activities.
- The UK has been working diligently with the US, making significant progress on a trade deal that may lead to reduced tariffs on steel and automobiles, beneficial for both nations' banking and finance sectors.
- Amidst the imposition of tariffs by the Trump administration on goods imported from countries like the UK, the US has managed to maintain a sizable trade surplus with the UK, amounting to $11.9 billion in 2024.
- The economic uncertainty created by Trump's tariffs policies has unsettled global financial markets, especially the banking sector, leading to concerns of a recession. Central bankers and business executives worldwide are working to address the quandaries and maintain the stability of their industries.
- The US and China, the world's top two economies, are set to hold talks in Switzerland, which might pave the way for resolving a potential trade war. The negotiations have been prompted by the far-reaching impacts of Trump's tariffs and the possibility they may further slow the global economy, including the general-news sector that reports on such events.
