President Donald Trump announced the United States has reached a trade agreement with the United Kingdom early Thursday morning, marking the first such pact since he imposed — and subsequently paused — widespread tariffs earlier this year.
“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 stated in a social media post ahead of a formal announcement at10 a.m. Eastern in the Oval Office.
While specific details remain under wraps, Agriculture Secretary Brooke Rollins characterized it as “an agreement in concept” with many aspects still to be finalized.
“This is going to be very, very good for our farmers and for our ranchers that have long suffered as we begin to realign,” Rollins told Fox Business, adding that she will travel to the UK on Sunday to continue discussions.
The deal is expected to provide relief on the 25% tariffs Trump imposed on UK automobiles, steel, and aluminum, though sources indicate the existing 10% universal tariffs will remain in place. According to earlier reports, the UK may exempt the US from some non-tariff trade barriers, including its 2% digital services tax on US technology companies, in exchange for easing the tariff burden.
British Prime Minister Keir Starmer confirmed he would address the outcome of trade talks later today. “Talks with the US have been ongoing and you’ll hear more from me about that later today,” he said at a defense industry conference in London. “But make no mistake, I will always act in our national interest, for workers, businesses and families.”
The UK is America’s ninth-largest trading partner, with the US exporting nearly $80 billion in goods and services while importing about $68 billion in 2024. Key UK exports to the US include machinery, transport equipment (with cars representing nearly half of exports), and chemicals for pharmaceuticals.
Financial markets responded positively to the announcement, with US stocks opening higher. The Dow Jones Industrial Average rose 0.48%, the S&P 500 gained 0.57%, and the Nasdaq composite climbed 1.03% in initial trading. Investors have been waiting for clarity on Trump’s trade policy, with Wall Street “paralyzed” by uncertainty in recent weeks.
Secretary of State Marco Rubio praised the agreement as “an important step towards fair and reciprocal trade” with other countries, echoing Trump’s assertion that this would be “the first of many” deals. Administration officials have indicated they are in active negotiations with India, South Korea, Japan, and others.
The announcement comes against a backdrop of global trade tensions. The European Union is preparing potential retaliatory tariffs worth €95 billion on US imports if their own negotiations fail, while the Bank of England recently cut interest rates, noting that “uncertainty surrounding global trade policies has intensified.”
Federal Reserve Chair Jerome Powell acknowledged on Wednesday that trade deals have “the potential to change the economic picture materially,” although the Fed kept interest rates unchanged in its latest decision.
Trump has framed the UK deal as particularly significant due to the countries’ “long time history and allegiance together,” adding that it was “a great honor to have the United Kingdom as our FIRST announcement” in what appears to be a strategy of negotiating individual agreements after imposing broad tariffs.