Trump announces trade deal with UK as tariffs continue to spark economic uncertainty

Our live coverage of the US-UK trade agreement has ended. Read more here.

US stocks closed higher on Thursday as President Donald Trump announced a trade deal with the United Kingdom and said he expects a “good weekend” of trade talks between the United States and China.

The Dow closed higher by 254 points, or 0.62%. The broader S&P 500 gained 0.58% and the tech-heavy Nasdaq Composite rose 1.07%. The three major indexes came off their highest levels of the day as market close neared, but still posted healthy gains that marked two consecutive days in the green.

“A trade agreement — even if it’s an agreement in principle — is what the markets were looking to see,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.

Investors embraced a risk-on attitude on Thursday as stocks and bitcoin rallied while safe-haven gold and US government bonds fell. Bitcoin surpassed $101,000 for the first time since February.

The yield on the 10-year Treasury note rose above 4.37% as investors sold bonds. Gold fell 2% to slide below $3,300 a troy ounce.

Stocks wavered in the morning before surging higher as Trump struck a positive tone on China and also urged investors to buy stocks. “You better go out and buy stock now,” the president said during a news conference at the White House. “Let me tell you, this country will be like a rocket ship that goes straight up.”

Trump said, “well, it could be,” in response to a reporter’s question about whether he would lower tariffs on China if trade talks this weekend went well.

“I mean, we’re going to see,” Trump said. “Right now, you can’t get any higher. It’s at 145, so we know it’s coming down. I think we’re going to have a very good relationship.”

“Greed” was the sentiment driving markets on Thursday, according to CNN’s Fear and Greed index. The index this month has surged from “fear” to “greed” and on Thursday hit its highest level since early December.

The US dollar index, which measures the dollar’s strength against six major foreign currencies, gained 1%.

“The UK is a relatively small trading partner and one where the US runs a merchandise surplus, making it a relatively easy case to strike a deal,” said Sarah Bianchi, senior managing director at Evercore ISI, in a note.

Bianchi said a key takeaway from the US-UK trade deal is that the 10% baseline tariff remains. “If the UK isn’t getting down to zero, it is very unlikely that anyone is,” she said.

“Even though there are still questions remaining about the mechanics of this trade deal and how soon we will see other deals, the positive headline is enough to keep the stock market’s recovery going,” said Robert Ruggirello, chief investment officer at Brave Eagle Wealth Management.

The 2026 Rolls-Royce Ghost is displayed during the press preview of the New York International Auto Show at the Jacob Javits Convention Center in New York City on April 16.

Even as President Donald Trump and his Cabinet members question how many dolls American children should own, his administration’s first trade “deal” includes a carveout for ultra-luxury cars.

Trump on Thursday hailed the fact that the US-UK trade framework calls for lowering tariffs on “super-luxury” brands including Rolls-Royce, Bentley and Jaguar.

“We took it from 25 to 10 on Rolls-Royce because Rolls-Royce is not going to be built here. I wouldn’t even ask them to do that. You know, it’s a very special car and it’s a very limited number, too,” Trump said during his Oval Office announcement.

According to a fact sheet shared by the White House, the Trump administration has agreed to lower tariffs on the first 100,000 UK vehicles imported into the United States each year to 10%. Additional vehicles face a 25% tariff.

“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 and that includes Bentley and Jaguar…some very special cars,” Trump said. “In order to help that industry and that’s really…handmade stuff and they’ve been doing it for a long time in the same location.”

Other luxury British car brands that could benefit from the lowered tariffs include Land Rover and Aston Martin.

That means Trump has made it cheaper to import cars that relatively few Americans buy — or, for that matter, can afford — while keeping tariffs for now on more popular and affordable brands.

“Laser focused on reducing prices for everyday Americans from Day One,” University of Michigan economist Justin Wolfers posted on X, “the President has struck a deal that will lower the price of Rolls Royces, Bentleys, Jaguars, Aston Martins, Range Rovers and Minis.”

Wolfers noted that “no other consumer good received carveouts” from the US-UK trade framework.

The UK exported only about 90,000 cars to the United States last year, according to S&P Global Mobility, making it the sixth-largest source of imported vehicles, responsible for only 1% of imported cars. But Commerce Department data showed that the value of its imported cars came to $12.3 billion, meaning the average price of a British import was more than $135,000.

Peter Navarro speaks to press outside the White House on May 8 in Washington, DC.

President Trump’s top trade adviser, Peter Navarro, says more trade deals are coming — but patience is required.

“There will be many more to come, and we hope they will come as quickly as this one,” Navarro said Thursday when addressing members of the press outside the White House. “Just be patient with us, if you can.”

Earlier on Thursday, the Trump administration said it had made its first trade agreement, with the United Kingdom, since the administration announced new global tariffs on nearly all US trading partners last month.

The UK deal “offers a template for how we’re going to proceed with the rest of the negotiations,” Navarro said.

The US still faces more than one hundred trade agreements to complete before its 90-day pause on tariffs runs out on July 8. That’s when tariffs as high as 50% on dozens of nations are set to go into effect.

Navarro also warned countries not to retaliate against US tariffs with higher tariffs of their own.

“Any country which retaliates against the United States, which is simply trying to get fairness, is making a great mistake,” he said.

Fresh off a newly announced trade agreement with the UK, President Donald Trump told reporters at the White House to expect more in the days to come — and that foreign leaders want to have Oval Office signing ceremonies to mark the occasion.

“Well, we’ll do others from the White House, we’re working on three of them right now, trade agreements — we’re doing three,” Trump told reporters during an impromptu gathering with reporters outside the West Wing. “But we’ll doing a lot of the signings — they would like to do them in the Oval Office.”

Trump unveiled Thursday’s trade agreement with the UK from the Oval Office, pledging it will be “the first of many.”

British Prime Minister Keir Starmer joined Trump via speakerphone Thursday for the trade announcement.

Greer testifies before the Senate Finance Committee in the Dirksen Senate Office Building on April 8, in Washington, DC.

US Trade Representative Jamieson Greer said trade talks with Vietnam and other South Asian countries have been positive after the US announced a trade agreement with the UK on Thursday, the first since President Donald Trump rolled out sweeping global tariffs last month.

“We will have additional deals,” Greer said on CNBC Thursday. “Vietnam and other Southeast Asian countries, they’re in, they’re talking to us and they’re being very forward-leaning.”

However, Greer cautioned that a deal with Vietnam or any other Asian country is not necessarily assured.

“Obviously, we have concerns about some of these countries. That’s where we have some of our largest trade deficits, and that’s actually the purpose of these tariffs: to get that trade deficit down,” Greer said.

“But we’re having fruitful talks with Vietnam and others, and they understand what we’re trying to solve for,” he added.

US stocks were on track to close higher Thursday after President Donald Trump announced a trade deal with the United Kingdom and said he expects a “good weekend” of trade talks between the United States and China.

The Dow was up 555 points, or 1.35%, in afternoon trading. The broader S&P 500 gained 1.36% and the tech-heavy Nasdaq Composite rose 1.9%. The three major indexes were set for back-to-back days of gains.

Here’s what investors and analysts are saying about the announcement of the US-UK trade deal, which is the first announced trade deal since Trump instigated a global trade war.

President Donald Trump has finally got his first trade deal done.

Well, not quite a “deal,” per se. More like a concept of a plan: a framework for negotiations between the United States and the United Kingdom that will take place between the two countries over the next several months or years … to hammer out a potential future trade agreement … that may or may not ultimately prove more beneficial to the United States than the existing trade situation.

But a win’s a win, and this is a big win for Trump. The agreement with the UK also gives other world leaders a reason to hope that other deals can rescue the global economy from the abyss, providing a framework for future negotiations.

Asked whether the deal is an improvement on the trading relationship of six months ago, before Trump took office, British Prime Minister Keir Starmer replied Thursday: “The question you should be asking is: Is it better than where we were yesterday?”

Undeniably, the answer is yes. Even if the details of the framework are sparse, tariffs on some UK goods will go down, and it could open up the market for some more US goods to enter the UK.

Now, the dealmaker-in-chief just needs to get more than a hundred more of these done before the clock runs out on July 8 — when punishing reciprocal tariffs as high as 50% on dozens of nations are set to go back into effect.

US stocks gained as President Donald Trump announced a trade deal with the United Kingdom during a news conference at the White House.

The Dow was up 650 points, or 1.59%. The broader S&P 500 gained 1.56%. The tech-heavy Nasdaq Composite rose 2%.

US stocks extended their gains as Trump struck a positive tone on upcoming trade talks with China. Stocks had initially wavered as Trump announced the US-UK trade deal, before surging higher as Trump said he expects a “good weekend” of trade talks with China.

Trump also urged investors to buy stocks. “You better go out and buy stock now,” the president said. “Let me tell you, this country will be like a rocket ship that goes straight up.”

Wall Street is eager for tariff rates to come down, and investors will scrutinize the details of trade deals.

Jay Hatfield, chief executive at Infrastructure Capital Advisors, said the US-UK trade deal looked “fairly thin” but was nonetheless a positive development.

The US dollar index, which measures the dollar’s strength against six major foreign currencies, gained 0.9%. The British pound weakened against the dollar after briefly gaining. And London’s FTSE 100 index closed lower by 0.3%.

Explaining the dip, Susannah Streeter, head of money and markets at Hargreaves Lansdown, told CNN that investors view the deal as more favorable to the US than the UK.

“10% tariffs are staying in place for great swathes of British exporters, but American companies selling into the UK will benefit from new cuts to duties,” she said.

Elsewhere, bitcoin crossed $100,000 for the first time in three months and gold prices slid 1.6%. The yellow metal is considered a haven during uncertainty.

UK Prime Minister Keir Starmer smiles as he discusses a UK-US trade deal with US President Donald Trump over the phone at a car factory in the West Midlands on May 8.

An imperfect deal is better than no deal, implied British Prime Minister Keir Starmer on Thursday following the announcement of a new US-UK trade agreement.

Asked by reporters in England whether the deal marks an improvement on the US-UK trading relationship of six months ago, before Trump took office, Starmer replied: “The question you should be asking is: Is it better than where we were yesterday?”

Chris Beauchamp, chief market analyst at trading platform IG, told CNN on Thursday that “it’s a relief (for markets) to see some kind of deal signed, even if it leaves tariffs on the UK at 10% and doesn’t remove them entirely.”

Today’s announcement is “very light on detail,” he added, “but investors are glad to see progress of any kind” — even with a trading partner that represents a small slice of US trade.

Others were less reassured by the announcement.

“For the rest of the world, this (deal) could offer something of a blueprint,” Paul Ashworth, chief North America economist at Capital Economics, wrote in a note on Thursday. “But countries being threatened with even higher reciprocal tariffs would presumably have to offer more that (sic) the UK, which only ever faced the 10% minimum.”

Michael Pearce, deputy chief economist at Oxford Economics, wrote in a note that the two sides had steered clear of negotiating on contentious issues such as opening UK health care markets to American providers.

“That fits with the broader picture that deep and comprehensive trade deals are difficult to achieve,” he said.

A sailboat passes idle shipping cranes at the Port of Oakland on April 28 in Oakland, California.

Ports across the United States, especially ones on the West Coast that receive shipments from China, are seeing a sharp decline in shipping volume since President Donald Trump levied a slew of tariffs on other nations last month. The steepest rate was the 145% tariff enacted across nearly all Chinese goods.

Because of those tariffs, American businesses are canceling orders from China. As a result, that’s beginning to spark fears of shortages.

Trump, however, does not appear to be the least bit concerned.

“That means we lose less money,” Trump told reporters in the Oval Office on Thursday, shortly after announcing a trade deal with the United Kingdom. Trump has taken particular issue with the trade imbalance between the US and China, given the US buys significantly more from China.

The slowdown at ports, he added, is “a good thing, not a bad thing.”

President Donald Trump touted Thursday’s agreement with Britain as a “full and comprehensive” pact — but what was announced is more of a framework, which enables each country to claim some tariff carve-outs while leaving much of the detail to be figured out later.

For Britain, the deal undoes the damage of three levies Trump brought in during his first months in charge: US tariffs on cars will be reduced from 27.5% to 10% for 100,000 British-made vehicles per year, and steel and aluminum tariffs will be scrapped entirely.

The agreement gives each country a tariff-free quota for 13,000 metric tonnes of beef exports, which Starmer said will not be accompanied by any reduction in Britain’s food standards. The United States also gets better access to the UK market for ethanol.

But beyond those scant details, plus some hints of further work on technology laws and movie production, neither Trump nor Starmer spelled out how the two countries’ trading relationship will significantly improve in the short term.

What will not change is Britain’s digital services tax on tech giants. Also unaddressed was Trump’s recent threat of tariffs on movies produced outside America — Britain boasts a significant film industry and offers tax breaks that encourage many US studios to shoot productions at studios like Pinewood and Shepperton.

Based on details announced so far, there appears to be plenty of work remaining until either London or Washington can claim to have reached a “full and comprehensive” trade deal.

Federal Reserve Chair Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building on May 7 in Washington, DC.

President Donald Trump isn’t letting up on his harsh criticism of Federal Reserve Chair Jerome Powell.

After announcing his “breakthrough” trade agreement with the United Kingdom on Thursday, Trump from the Oval Office continued to slam the Fed leader for not lowering interest rates quickly enough.

While speaking with reporters after his announcement, Trump was asked if he’d ever call a meeting with Powell, to which he responded: “I could call him for a meeting but it’s like talking to a wall.”

On Wednesday, after the Fed announced it will continue to hold interest rates steady, Powell said he hasn’t met with Trump since the president was sworn in for his second term, saying that he is never one to initiate a meeting with a US president.

“The Bank of England cut, China cut, everybody’s cutting (interest rates) but him,” Trump said Thrusday. “He’s always too late.”

“In this case it’s not going to matter that much because our country is so strong, we’re so powerful in terms of economic strength.”

“He’s not in love with me,” Trump said about Powell.

President Donald Trump and United Kingdom Prime Minister Keir Starmer offered few details on what’s actually included in the trade deal they worked out on Thursday. However, the closest sense of what’s included came from a fact sheet the White House released as Trump addressed reporters from the Oval Office.

“This trade deal will significantly expand US market access in the UK, creating a $5 billion opportunity for new exports for US farmers, ranchers, and producers,” the fact sheet said. It’s unclear if that implies the UK committed to buying an additional $5 billion worth of US goods, however.

The sheet confirmed that the 10% tariff Trump levied on the UK last month will remain in effect.

The deal appears to center predominantly around cars, the US’ sixth-top export to the UK and the UK’s top export to the US, according to data from the Commerce Department.

“Under the deal, the first 100,000 vehicles imported into the US by UK car manufacturers each year are subject to the reciprocal rate of 10% and any additional vehicles each year are subject to 25% rates,” the fact sheet states. That’s a change from the 25% tariff in place for foreign cars shipped to the US.

The fact sheet also suggested that aluminum imports from the UK, which are currently subject to the global 25% tariff rate, could be modified.

Cuts of beef move along a conveyer belt above workers at the Greater Omaha Packing beef processing plant in Omaha, Nebraska, on November 2, 2022.

President Donald Trump on Thursday called the negotiations between the United States and the United Kingdom a “huge deal” but didn’t announce many concrete details in the Oval Office. Instead, he offered broad strokes.

Leaders of both countries stressed that there were still some details in flux. British Prime Minister Keir Starmer said the details would be “ironed out” over time. But the outlines of that announcement could develop a concrete pathway to a broader trade pact.

Some aspects of the negotiations, however, became clear Thursday.

Commerce Secretary Howard Lutnick said the United Kingdom would reduce trade barriers of several agricultural products, including ethanol and beef, and machinery to the United States.

Lutnick added that a 10% tariff on all UK imports will remain in place. Agriculture Secretary Brooke Rollins said the tariffs on ethanol will be reduced to “zero,” adding that the deal will also result in higher US beef exports.

Britain will also be able to send 100,000 cars into the United States at a 10% tariff rate, reduced from the 25% autos tariffs Trump imposed on foreign cars, Lutnick announced. The UK will also join the US in imposing 25% tariffs on foreign steel and aluminum, creating a joint tariff agreement that will create a free trade zone for those metals between the two countries. Pharmaceuticals will also be exempt from tariffs between the two countries.

Prime Minister Keir Starmer said the deal will “remove tariffs on British steel and aluminium, reducing them to zero,” and will “grant unprecedented access for British farmers without compromising our high standards,” during a press conference in England, Thursday.

According to industry data, last year Britain sent £370 million ($492 million) worth of steel to the United States, accounting for 9% of the United Kingdom’s total steel exports.

The US-UK trade deal will cut tariffs on British automobiles from 27.5% to 10% for 100,000 vehicles every year, Prime Minister Keir Starmer said during a press conference in England Thursday.

“It will remove tariffs on British’s steel and aluminium, reducing them to zero,” and will “grant unprecedented access for British farmers without compromising our high standards,” Starmer also said.

According to industry data, last year Britain sent £370 million ($492 million) worth of steel to the United States, accounting for 9% of the United Kingdom’s total steel exports.

Speaking at a Jaguar Land Rover plant in the West Midlands region, Starmer added: “We’re sending a message to the world that Britain is open for business: seeking trade agreements with India on Tuesday, with the US today and working to boost trade with other partners too, including of course the EU.”

Starmer defended the relationship he has built with President Donald Trump. “In recent years an idea’s taken hold that you sometimes show your strength by rejecting your allies. That you shut the door, put the phone down, storm off,” he said.

“I’ve had plenty of people urging me to do that, rather than stay in the room and fight for the interests of our country … That’s not how this government operates.”

The US plans to keep a 10% base tariff in place as part of its planned trade agreement with the United Kingdom.

That’s not a template for future deals, President Donald Trump said Thursday from the Oval Office.

“That’s a low number,” he said. “They made a good deal.”

Trump said that tariff rates could be “much higher” for other countries, because “they have massive trade surpluses and, in many cases, they didn’t treat us right.”

Trump on April 9 paused for 90 days “reciprocal” tariffs as high as 50% on dozens of countries. For other countries, including the UK, a baseline 10% tariff on all goods coming into the United States was imposed. Trump said that 10% rate is non-negotiable.

But Thursday’s comments suggest that the negotiations with countries subject to the delayed reciprocal tariffs wouldn’t be able to get rid of those higher tariffs entirely.

“Overwhelmingly the most important fact about today’s trade deal is that the 10% across the board tariffs are staying. Tiny tweaks here and there with some trading partners won’t change that,” said Justin Wolfers, professor of economics at the University of Michigan. “The US is a high tariff country for the foreseeable future, and the trade war continues.”

President Donald Trump makes an announcement about a trade deal with the UK in the Oval Office at the White House in Washington, DC, on May 8.

For the first time since President Donald Trump escalated the trade war with China by placing a minimum 145% tariff on most goods from there, Trump said he’d be willing to meet with Chinese President Xi Jinping.

“I might, yeah, sure, depending on what Scott says,” Trump replied to a reporter who inquired about whether he would talk to Xi after Treasury Secretary Scott Bessent and other US officials meet with Chinese officials this weekend.

Trump also said he expected that meeting to be “very substantive.”

Ahead of the first formal round of trade talks set to occur between the United States and China over the weekend, President Donald Trump signaled he won’t consider levying even tariffs on Chinese goods. Currently, most Chinese exports to the US face a minimum 145% tariffs.

“You can’t get any higher. It’s at 145 so we know it’s coming down,” Trump said Thursday speaking in the Oval Office after announce a trade agreement with the United Kingdom.

Meanwhile, China has placed a minimum tariff of 125% on most goods from the US.

There are more deals to come on the trade front, President Donald Trump said Thursday from the Oval Office after announcing a bilateral trade deal with the United Kingdom.

Trump said there are “numerous” deals in the works, noting that Treasury Secretary Scott Bessent will meet with Chinese counterparts in Switzerland this weekend.

“China very much wants to make a deal,” Trump said. “We’ll see how that works out.”