Here are the facts on the U.S.-U.K. trade agreement
Social Sharing
U.S. President Donald Trump announced an agreement with the U.K. to lower tariffs and increase trade between the two countries. It's been hailed as the first trade deal since Trump imposed worldwide tariffs in April.
He has promised more deals to come, and Prime Minister Mark Carney said after his visit with Trump this week that trade would be the subject of much negotiation between Canada and the U.S. in the coming months.
The U.K. is a far smaller trading partner to the U.S. than Canada. But today's announcement could offer clues to what Trump might do in other deals.
First of all, it hasn't been finalized
Both Trump and U.K. Prime Minister Keir Starmer hailed their agreement as a "great deal," making it easy to believe it's been signed, sealed and delivered. But not quite.
Trump acknowledged this in his announcement. "The final details are being written up," he told reporters. "In the coming weeks, we'll have it all very conclusive."
So could it change? There's no indication of that. But so far it isn't final. Normally, formal trade deals need to be approved by Congress. It's not clear whether this counts as a formal trade deal. And as Trump has shown time and again, he changes his mind.
WATCH | Final details of U.S.-U.K. trade deal still to come says Trump:
Trump says final details of U.K. trade agreement still to come
5 hours ago
Duration 6:19
What does the U.K. get?
The big win is on autos. Last month, the Trump administration imposed a 25 per cent tariff on all foreign cars going to the U.S. (in addition to a previous tariff, which for the U.K. was 2.5 per cent). The U.K. has been desperate to get that changed or, ideally, eliminated.
The U.S. is the largest destination for British cars, accounting for more than a quarter of U.K. auto exports in 2024, according to the Office for National Statistics.
Jaguar Land Rover stopped shipping vehicles to the U.S. on April 7 in response to the tariffs. But the company resumed those shipments about a week ago.
Thursday's agreement allows the U.K. to send a maximum of 100,000 vehicles to the U.S. at a lower tariff rate of 10 per cent. That's about the same number of cars the U.K. sent to the U.S. last year.
Starmer underlined the importance of that by visiting at Jaguar Land Rover plant near Birmingham today.
In what appears to be another win, 25 per cent tariffs on steel and aluminum will be dropped.
What does the U.S. get in return?
The president said the agreement would lead to more beef and ethanol exports to the U.K.
But other agricultural products are not included. The U.K. and Europe have long maintained food standards that prevent U.S. chicken and other products from being sent there.
"We had red lines. Standards in agriculture, we kept to those," said Starmer.
Trump's commerce secretary, Howard Lutnick, said U.S. companies will have have expanded access to U.K. markets, potentially worth $5 billion. He said the U.K. will now buy some products from the U.S. that it had previously imported from other countries.
How out of whack is trade between the U.K. and the U.S.?
It isn't, and Lutnick said as much: "We have balanced trade with the U.K." In fact by some measures, the U.K. actually has a small trade surplus.
Despite this, Trump slapped the U.K. (and almost every other country) with a 10 per cent "baseline" tariff in April.
That is not going away with this agreement. And Trump suggested this was favourable treatment, warning other countries not to expect the same in future negotiations. "That's a low number," Trump said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
18 minutes ago
- Globe and Mail
Is TJX's 5% Drop Post Q1 Earnings a Caution or Opportunity?
The TJX Companies, Inc. TJX saw its shares drop 5% following the release of its first-quarter fiscal 2026 results on May 21, 2025. This performance marks a notable underperformance compared to the Zacks Retail - Discount Stores industry, the Zacks Retail and Wholesale sector, which slipped 1% and 0.5%, respectively, and the broader S&P 500, which advanced 0.2% during the same period. The TJX Companies' Price Performance Post-Earnings The TJX Companies has delivered relatively lower stock performance compared to some other major players in the discount retail sector, such as Dollar General Corporation DG, Dollar Tree DLTR and Costco Wholesale Corporation COST. During the same period, Dollar General Corporation, Dollar Tree and Costco Wholesale Corporation posted gains of 10.2%, 6.8% and 1.9%, respectively. Notably, the pullback in TJX shares came despite the company surpassing expectations on both the top and bottom lines. Its fiscal first-quarter results exceeded the Zacks Consensus Estimate for earnings and revenue, reflecting continued strength in customer traffic and solid comparable store sales across all divisions. Interestingly, the stock was trading near record levels ahead of the earnings release. Trading at $128.12 as of June 3, TJX shares are down 5.7% from their 52-week high of $135.85, which was reached on May 20, just a day before the earnings announcement. This divergence between solid earnings performance and stock price weakness raises a critical question for investors: Is the pullback a short-term overreaction or a long-term buying opportunity? TJX's Q1 Performance: Key Takeaways The TJX Companies reported a strong start to fiscal year 2026, demonstrating solid performance across all divisions. Growth was broad-based, fueled by an increase in customer traffic in both U.S. and international markets. As a result, net sales reached $13,111 million, marking a 5% year-over-year increase, consistent on a constant currency basis. Consolidated comparable store sales rose 3%, primarily driven by higher customer transactions. However, earnings per share (EPS) were 92 cents per share, down from 93 cents reported in the year-ago quarter. Breaking down the performance by segment, comparable store sales grew 2% at Marmaxx (U.S.), 4% at HomeGoods (U.S.), 5% at TJX Canada, and 5% at TJX International (Europe and Australia). Comparable sales increased in both apparel and home categories, underscoring TJX's effective strategy and positioning the company for long-term sustainability with a focus on driving customer transactions. TJX Reaffirms Growth Outlook Amid Challenges On its last earnings call, TJX highlighted a strong start to the fiscal second quarter and reaffirmed its focus on executing the core fundamentals of its off-price retail model. Management remains confident that the company's broad and compelling assortments, coupled with a resilient business model, will continue to attract value-conscious shoppers, even amid ongoing macroeconomic challenges and tariff-related pressures. The company expects consolidated comparable store sales growth of 2% to 3% for the fiscal second quarter. Quarterly EPS are projected to range between 97 cents and $1.00, indicating a 1% to 4% increase compared to 96 cents in the prior year's period. For the full fiscal year 2026, TJX anticipates comparable store sales growth of 2% to 3%, consolidated sales to be in the range of $58.1 billion to $58.6 billion, up 3% to 4% with EPS forecasted between $4.34 and $4.43, an increase of 2% to 4% from the previous year's $4.26. The TJX Companies' Strategic Strengths TJX Companies remains upbeat about its long-term prospects, grounded in a strong business model and a proven ability to adapt through various retail and economic cycles. The company credits its resilience to the flexibility of its off-price model, the experience of its leadership team, and a well-established global buying network that taps into a wide range of vendors worldwide. At the heart of TJX's strategy is its value proposition, delivering a compelling mix of brand, fashion, quality, and price, which continues to attract a broad and diverse customer base. This broad appeal is supported by a carefully curated mix of brands that sustain steady traffic. Backed by a flexible, global buying and supply chain model and a unique treasure-hunt shopping experience, it remains well-equipped to adapt to changing consumer preferences and capture market share in both stable and challenging economic conditions. TJX has also benefited from solid growth in both its physical stores and e-commerce channels. The company is rapidly expanding its footprint in the United States, Europe, Canada, and Australia. In the first quarter of fiscal 2026 alone, TJX added 36 new stores, ending the quarter with a total of 5,121 locations. Further, with an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to boost online sales and strengthen its e-commerce business. Is TJX Stock's Discounted Valuation Good? The TJX Companies is currently trading at a notable discount compared to its industry peers, making it an appealing option for value-focused investors. As of now, TJX trades at a forward 12-month price-to-earnings (P/E) ratio of 27.75X, which is significantly lower than the industry average of 34.17X. While its valuation is lower than that of Costco Wholesale Corporation, which trades at a significantly higher 54.42X, it remains above other discount retail peers such as Dollar General Corporation and Dollar Tree, which have P/E ratios of 19.48X and 17.89X, respectively. TJX P/E Ratio (Forward 12 Months) The TJX Companies is also trading well above its 50-day and 200-day moving averages, an important bullish technical indicator. This breakout is not just technical but reflects growing market confidence in its growth story. TJX Companies: Navigating Cost Pressures and Global Risks Despite its strengths, TJX faces several challenges that could impact its near-term performance. Rising operating costs, driven by inflationary pressures and wage increases, may put pressure on margins despite ongoing efforts to manage expenses. Additionally, continued trade tensions and tariffs on imports from China and other countries remain a concern, while foreign exchange headwinds could further weigh on profitability. One of the key near-term risks for TJX is the impact of tariffs on both direct and indirect imports into the U.S. Management expects these pressures to weigh on fiscal second-quarter performance, with gross margin projected to decline by 40 basis points (bps) year over year to 30%. Despite mitigation strategies like pricing adjustments and sourcing shifts, the company forecasts a full-year gross margin contraction of 10 to 20 bps, which could strain profitability even if sales remain strong. Additionally, TJX's international operations make it vulnerable to currency fluctuations. Management anticipates foreign exchange headwinds will reduce pretax profit margin by 10 to 20 basis points in fiscal 2026, presenting further risks to overall performance. Downward Estimate Movement of TJX's Earnings Reflecting cautious sentiment around The TJX Companies, the Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 30 days, the consensus estimate has declined 2 cents to $1.00 for the current quarter and a cent to $4.46 for the fiscal year, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Investor Takeaway for TJX Following the post-earnings dip, The TJX Companies presents a mixed picture for investors. While the company delivered better-than-expected results in the fiscal first quarter, driven by solid customer traffic and broad-based sales growth, external headwinds continue to weigh on sentiment. Inflationary cost pressures, rising wages, tariffs and currency fluctuations are expected to pressure margins in the near term. Additionally, recent downward revisions in earnings estimates reflect growing investor caution. That said, TJX's resilient off-price model, strong global footprint, and consistent execution provide a solid foundation for long-term growth. With shares trading at a reasonable valuation relative to peers, investors may consider holding the stock as the company navigates short-term challenges. As macro conditions stabilize and cost pressures ease, TJX could be well-positioned to regain momentum. The TJX Companies carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report
National Post
19 minutes ago
- National Post
Justice minister apologizes for comments that 'potentially eroded' trust with Indigenous peoples
OTTAWA — Justice Minister Sean Fraser apologized Wednesday for recent comments about the federal government's duty to consult First Nations regarding developing projects on their territories, saying his words 'potentially eroded a very precarious trust.' Article content The issue has emerged in light of Prime Minister Mark Carney's plan to introduce legislation that would fast-track approvals for major energy and infrastructure projects by cutting the timeline to two years, down from five. Article content Article content Article content The Assembly of First Nations, a national advocacy organization representing more than 600 First Nations across the country, has expressed concerns that, from what they have seen of the forthcoming bill, it 'suggests a serious threat' to First Nations treaty rights. Article content Article content In a recent letter to Carney, National Chief Cindy Woodhouse Nepinak cited the United Nations Declaration on the Rights of Indigenous Peoples, which outlines the principle of obtaining 'free, prior, and informed consent' regarding laws and decisions that affect Indigenous peoples. Article content When asked about that principle on Tuesday, Fraser outlined his interpretation of it, telling reporters that it demands 'a very deep level of engagement and understanding of the rights that may be impacted.' Article content However, he said, 'it stops short of a complete veto' when it comes to government decisions Article content On Wednesday, Fraser apologized for those comments, saying it gave some the impression of the government wanting to 'work unilaterally, not in partnership,' with Indigenous people. Article content Article content 'Despite innocent intentions, I think my comments actually caused hurt and potentially eroded a very precarious trust that has been built up over many years to respect the rights of Indigenous people in this country,' he said on his way into the Liberal caucus meeting. Article content The minister said that after he made those remarks he received a call from the national chief, 'expressing her frustration.' Article content Fraser said he apologized to Woodhouse Nepinak and committed to do so publicly. Article content 'This is completely on my own initiative,' Fraser told reporters. Article content 'I've not been asked to do this by anyone. (Woodhouse Nepinak) said that she would appreciate if I would offer some clarity. But this is not coming from anyone within government. This is something I feel compelled to do.' Article content National Post Article content staylor@ Article content Article content Article content
CBC
25 minutes ago
- CBC
Quebec law helps victims of non-consensual intimate image sharing remove photos
A Quebec law is coming into force, giving people new tools to obtain a court order to remove intimate images posted online. Under the Criminal Code, publishing, texting or sharing intimate images of someone without their consent is a crime. But for most victims, this does not always mean unlawfully shared images will get removed quickly. The new Quebec law allows victims to fill out a form online or at a courthouse and obtain an order from a judge requiring the images or footage to be removed. Failure to comply comes with stiff penalties — with fines up to $50,000 per day for a first offence or 18 months in jail. Quebec is the second province after British Columbia to pass legislation protecting victims of non-consensual image sharing.
