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 was held in the Oval Office at 10 a.m. EST yesterday, where Trump formally addressed the agreement.
“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 said.
“The Golden Age of America is coming!”
The deal follows months of mounting trade tension between the two nations. Since April 5, the U.K. has been subject to a 10% reciprocal tariff imposed by the U.S. on imported goods. Iconic British car brands such as Jaguar and Aston Martin have been hit with 25% surcharges, leading to a sharp decline in Land Rover sales, according to Autoblog.
Prior to these measures, trade between the two allies was largely stable. Most U.K. imports faced low tariffs, typically ranging from 0% to 2.5%, with higher duties targeting specific sectors like steel, aluminum, and automobiles, Fox Business reports.
Conversely, the U.K. imposed steeper tariffs on U.S. goods based on the United Nations’ designation of the U.S. as a “Most Favored Nation”—a classification President Trump has frequently condemned as biased, arguing that it unfairly penalizes American consumers despite their robust purchasing power in global markets.
The pressure of ongoing trade disputes has triggered a global rush to finalize new agreements with the Trump administration. Thursday’s announcement comes on the heels of a recently finalized free trade pact with India.
A U.K. official told the media earlier this week that significant progress has been made on reducing tariff quotas for steel and automobile exports, signaling a thaw in economic relations.
The timing also strengthens the White House’s position ahead of upcoming high-level trade talks with China. As U.S. officials prepare to meet Chinese counterparts in Switzerland, Treasury Secretary Scott Bessent has asserted that China is reeling under the weight of 145% tariffs enacted in early April. According to Bessent, if these remain in place, the Chinese economy could lose between five and ten million domestic jobs.
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