Trump Announces UK Trade Deal, Proposes 80% Tariff on China, and Maintains 10% Global Tariff Policy

Former President Donald Trump announced a preliminary trade agreement with the UK, reducing tariffs on UK car imports and eliminating tariffs on UK steel, while maintaining a 10% tariff on most other UK goods. Trump also proposed lowering the 145% tariff on Chinese imports to 80% ahead of trade talks in Switzerland. Despite these changes, the White House confirmed Trump's commitment to a 10% baseline tariff on imports from all countries. The UK deal is part of a broader strategy, with over 20 additional trade agreements nearing resolution.

Initial UK Trade Deal Announced

On Thursday, President Trump announced what he called a “full and comprehensive” trade agreement with the United Kingdom. Speaking from the Oval Office with UK Prime Minister Keir Starmer on speakerphone, Trump described the deal as “an incredible day for America,” emphasizing that it was the first in a series of trade agreements his administration has been negotiating over the past month.

The agreement includes a reduction in tariffs on UK car imports from 27.5% to 10% and the elimination of tariffs on UK steel. However, a 10% tariff will remain on most other UK goods. According to the White House, the UK has agreed to fast-track American goods through its customs process, aiming to streamline bilateral trade.

Despite the announcement, the deal remains in its early stages. Bloomberg News and other outlets have noted that the agreement lacks detailed provisions and is not yet finalized. The U.S. had a trade surplus of nearly $12 billion with the UK in 2024, and the new framework is expected to build on that relationship, though many specifics are still under negotiation.

10% Baseline Tariff Policy to Remain in Place

While the UK deal introduces some tariff reductions, the White House has made it clear that Trump’s 10% baseline tariff on imports from all countries will remain in effect. White House Press Secretary Karoline Leavitt confirmed on Friday that the president is “determined to continue with that 10% baseline tariff,” even after trade agreements are finalized.

“The president is committed to the 10% baseline tariff — not just for the United Kingdom, but for his trade negotiations with all other countries as well,” Leavitt told reporters. When asked whether the tariff would be permanent, she reiterated, “I just spoke to him earlier. The president is determined to continue with that 10% baseline tariff.”

The baseline tariff was first introduced on April 2, 2025, as part of a broader overhaul of U.S. trade policy. It was accompanied by a 145% tariff on Chinese imports and a 25% global tariff on cars. The administration later paused many country-specific tariffs for 90 days to allow for negotiations, but the 10% baseline remained in place.

Trump Floats 80% Tariff on China Ahead of Talks

In a notable shift ahead of trade talks with China, Trump suggested on Friday that the U.S. could lower its tariff on Chinese goods from 145% to 80%. Posting on Truth Social, Trump wrote, “80% Tariff on China seems right! Up to Scott B,” referring to Treasury Secretary Scott Bessent, who is leading the U.S. delegation in Switzerland alongside U.S. Trade Representative Jamieson Greer.

The talks with Chinese Vice Premier He Lifeng are the first in-person negotiations between the two countries since the imposition of the 145% tariff in April. China responded to the U.S. tariffs with its own 125% duties on American goods.

Trump’s comments mark a potential softening of his earlier stance. Earlier in the week, he had flatly rejected the idea of lowering tariffs on China, stating, “No,” when asked if he would consider easing the duties to facilitate negotiations. However, by Friday, his tone had shifted. “I think we will have a very good weekend,” Trump told reporters, adding that if talks go well, “you know it’s coming down.”

Despite the apparent openness to reducing tariffs, the White House emphasized that any changes would require reciprocal concessions from Beijing. “The president still remains with his position that he is not going to unilaterally bring down tariffs on China,” Leavitt said. “We need to see concessions from them as well.”

Broader Trade Strategy and Ongoing Negotiations

The Trump administration has indicated that the UK deal is just the beginning of a broader trade strategy. Trump stated that over 20 additional trade agreements are “close to being resolved,” and White House economic adviser Kevin Hassett echoed that sentiment, saying many deals are “in the hopper.”

The administration’s approach has been to negotiate country-specific agreements while maintaining a consistent baseline tariff. This strategy, according to Trump, ensures “reciprocity and fairness” in international trade. “You are going to always have a baseline,” he said when asked whether countries offering zero tariffs would receive the same in return.

Meanwhile, the European Union has paused its retaliatory tariffs on U.S. goods during the 90-day negotiation window, and the U.S. has reduced its reciprocal tariff on EU goods from 20% to 10%. However, the EU has also prepared a list of U.S. products that could be targeted if talks fail.

Trump Announces UK Trade Deal, Proposes 80% Tariff on China, and Maintains 10% Global Tariff Policy

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