Trump to Announce Major Trade Deal with United Kingdom Amid 90-Day Tariff Pause

US • Business • 05/08 04:31
Trump to Announce Major Trade Deal with United Kingdom Amid 90-Day Tariff Pause

Former President Donald Trump plans to announce a major trade agreement on Thursday, the first since imposing tariffs last month. Trump described the partner as a 'BIG, AND HIGHLY RESPECTED, COUNTRY' on Truth Social. The announcement occurs during a 90-day tariff pause, used to negotiate new trade frameworks. Media reports suggest the United Kingdom is the likely partner. The deal is expected to be a framework rather than a detailed pact, reflecting Trump's strategy of prioritizing speed and symbolism in trade negotiations.

Key Updates

05/08 18:31

President Trump and UK PM Starmer Announce Landmark Trade Deal: US Reduces Tariffs on UK Cars; Over 5 Million US Student Loan Borrowers Face Consequences

On May 8, 2025, President Donald Trump and UK Prime Minister Keir Starmer announced a trade agreement reducing U.S. tariffs on the first 100,000 UK vehicles from 27.5% to 10% and eliminating tariffs on UK steel and aluminum. The UK will lower tariffs on U.S. goods and purchase $10 billion in Boeing aircraft. Concurrently, the U.S. Department of Education resumed collections on defaulted student loans, affecting 5.3 million borrowers, with potential wage garnishment and loss of federal benefits following a five-year pause.

05/08 17:30

Trump Imposes 10% Baseline Tariff on Imports, UK Secures Preferential Terms Amid New Trade Policy

President Donald Trump announced a new trade policy imposing a 10% baseline tariff on most imports to the U.S., effective early April. Countries with large trade surpluses face higher tariffs, with China hit by a 145% rate. The UK secured a special deal maintaining the 10% rate, citing historical ties. The policy aims to correct unfair trade practices and boost domestic manufacturing. The U.S. is negotiating with over 70 countries to avoid higher tariffs, while domestic businesses express concerns over increased costs and market unpredictability.

05/08 17:01

US Stock Markets Surge Over 1% on US-UK Trade Deal and Bank of England Rate Cut

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05/08 12:31

Shein's Women's Fashion Prices Rise 43% Due to Trump-Era Tariffs, Washington Post Reports

Shein has raised prices on women's fashion items by an average of 43% due to tariffs on Chinese imports imposed by the Trump administration. The tariffs, reaching up to 145%, and the removal of the 'de minimis' exemption, which allowed duty-free imports under $800, have forced Shein to adjust its pricing model. The Washington Post analysis found significant price increases on nearly 300 products, with some items like casual athletic shoes and tote bags seeing over 80% hikes. These changes challenge Shein's low-cost appeal and reflect broader impacts on e-commerce platforms.

05/08 12:31

US-UK Reach Limited Tariff Deal; Bank of England Cuts Rates to 4.25% Amid Trade Tensions

The US and UK have agreed on a limited trade deal reducing some tariffs on British exports, but the 10% blanket tariff from Trump's administration remains. Announced Thursday, this is the first agreement since Trump's April protectionist measures. Concurrently, the Bank of England cut its interest rate by 25 basis points to 4.25%, citing global economic uncertainty from trade tensions. The deal focuses on specific sectors, with potential tariff reductions for UK carmakers and steel exports, but excludes agricultural products. The BoE's rate cut reflects concerns over global trade disruptions impacting economic growth.

05/08 04:31

Trump to Announce Major Trade Deal with United Kingdom Amid 90-Day Tariff Pause

Former President Donald Trump plans to announce a major trade agreement on Thursday, the first since imposing tariffs last month. Trump described the partner as a 'BIG, AND HIGHLY RESPECTED, COUNTRY' on Truth Social. The announcement occurs during a 90-day tariff pause, used to negotiate new trade frameworks. Media reports suggest the United Kingdom is the likely partner. The deal is expected to be a framework rather than a detailed pact, reflecting Trump's strategy of prioritizing speed and symbolism in trade negotiations.

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U.S.-China Trade Talks Set for Switzerland Amid Market Volatility; India-Pakistan Tensions Rise with Airstrikes and Downed Jets

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05/07 08:31

U.S. and China to Hold First Trade Talks in Geneva Since Trump's Tariff Hike

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05/06 08:32

Brazilian Soy Farmers Thrive Amid US-China Trade War: Trump's Tariffs Shift Soybean Market to Brazil

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05/05 21:01

Shein and Temu Increase Digital Ads in Europe as U.S. Tariff Changes Impact Strategy

Chinese fast-fashion companies Shein and Temu are increasing digital advertising in Europe, particularly in the UK and France, due to the end of the U.S. de minimis tariff exemption on May 2, 2025. This policy change, which removed duty-free status for packages under $800, has disrupted their U.S. operations. In response, both companies are reallocating marketing budgets to Europe and Brazil, adjusting logistics, and facing challenges like inventory shortages and price increases. The shift is impacting digital ad markets, with increased competition in Europe and Latin America.

A Trade Deal Amid a Tariff Storm

On April 2, 2025, Trump reintroduced a 10% blanket tariff on all imported goods, alongside a series of “reciprocal tariffs” targeting countries with large trade surpluses with the United States. The move triggered a sharp downturn in global markets and drew criticism from economists and trade partners alike. In response to the market volatility, Trump paused the tariff hikes for 90 days, with the exception of China, which remains subject to a 145% tariff that has effectively halted bilateral trade.

During this pause, Trump’s administration has engaged in a flurry of negotiations with several countries, including Japan, South Korea, Vietnam, India, and the United Kingdom. The former president has framed these talks as part of a broader effort to rebalance trade relationships and bring manufacturing back to the U.S.

The Announcement and What We Know

Trump teased the trade deal in a Truth Social post late Wednesday, writing: “MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!” He added that the announcement would take place at 10:00 a.m. ET in the Oval Office, with representatives from the unnamed country present.

The White House has declined to comment on the identity of the country or the terms of the agreement. However, several U.S. media outlets, including The New York Times, Politico, and the BBC, have reported that the United Kingdom is the likely partner, citing individuals familiar with the negotiations. The UK’s Department for Business & Trade has not confirmed the reports, and the White House has remained silent on the matter.

A Framework, Not a Final Deal

While the announcement is being billed as a “major trade deal,” officials and analysts caution that it may be more of a framework agreement than a fully detailed pact. Trade deals typically take months or even years to negotiate, and Trump’s approach appears to prioritize speed and symbolism over comprehensive policy.

According to NPR, Trump’s trade agreements may serve as initial frameworks, with specifics to be determined in follow-up negotiations. This strategy allows the administration to claim early victories while continuing to pressure trading partners for concessions.

The UK’s Position in U.S. Trade Policy

The United Kingdom has long been a close ally of the United States and a significant trading partner. However, it has not been immune to Trump’s tariff policies. The UK is currently subject to the 10% global tariff and faces additional 25% duties on steel, aluminum, and automobiles.

Despite these barriers, the UK has remained engaged in trade talks with Washington. The potential agreement could signal a thaw in trade tensions and offer a model for other countries seeking to avoid or reduce U.S. tariffs.

Reports suggest that the UK was not targeted by the more punitive “reciprocal tariffs” that Trump imposed on countries like China, Mexico, and Canada. This may have created a more favorable environment for negotiations.

Broader Trade Strategy and Global Implications

Trump’s renewed focus on bilateral trade deals reflects a return to the protectionist agenda he championed during his first term. He has argued that the U.S. has been disadvantaged by multilateral trade agreements and that tariffs are a necessary tool to correct imbalances and incentivize domestic production.

Since the April tariff announcement, Trump’s trade team has been working intensively to secure new deals. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are scheduled to meet with China’s top economic official, He Lifeng, in Geneva from May 9 to 12. However, Trump has stated that he is unwilling to lower tariffs on China without significant concessions, and talks with Beijing remain uncertain.

Meanwhile, discussions with Southeast Asian nations, including Vietnam and South Korea, are reportedly in advanced stages. Trump has also hinted at potential deals with India and Israel, though no formal announcements have been made.

Market Reaction and Political Context

The announcement has had a modest impact on financial markets. The U.S. Dollar Index dipped slightly, while S&P 500 futures rose by 0.5% following reports of the impending deal. The British pound also appreciated, reflecting investor optimism about a potential U.S.-UK agreement.

The trade deal comes at a politically strategic moment for Trump, who is seeking to solidify his economic credentials ahead of the 2026 midterm elections. His administration has framed the tariff pause as a negotiating window, with trade adviser Peter Navarro suggesting that “90 deals in 90 days” could be on the table.

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