Latest news with #USUKDeal
The Guardian
3 days ago
- Business
- The Guardian
UK forging ahead with US trade talks, despite court block on Trump's tariffs
British officials are forging ahead in their trade talks with the US despite a recent court decision overturning many of Donald Trump's tariffs, and hope to have a deals covering cars, metals and aeroplane parts in place within weeks. A team of British negotiators spent much of last week in Washington talking to their American counterparts about how to implement the deal was signed earlier this month, including how quickly it can be passed by parliament and Congress. The talks come despite a ruling last week by a federal court overturning Trump's blanket 10% tariffs, which Downing Street believes will eventually be overruled by the president's allies on the supreme court. But on Thursday night, an appeals court paused the ruling while it looks more closely at the arguments – allowing Trump's administration to keep them in place. One government source said: 'Some countries are viewing the court ruling as an indication that they were right not to negotiate over tariffs. We're taking the opposite view, and trying to get this deal implemented as soon as possible.' A government spokesperson said: 'The UK was the first country to secure a deal with the US in a move that will protect British business and jobs across key sectors, from autos to steel. 'We are working to ensure that businesses can benefit from the deal as quickly as possible and will confirm next steps in due course.' The US president announced the US-UK trade deal earlier this month from the Oval Office, calling it 'very special for the UK and special for the United States'. Trump surprised Downing Street with the timing of his announcement, informing Keir Starmer just hours before he made it, with many of the finer details still to be ironed out. Under the terms of the agreement, for example, British car companies will be allowed to export 100,000 vehicles a year at a 10% tariff rate. But the deal does not set out how the Americans will view cars assembled in the UK with a considerable proportion of parts made in other countries, nor how parts themselves will be treated. While the details are being fleshed out, some British companies are being forced by their American customers to reduce their prices, while others say they are simply not exporting at all. Earlier this week, a federal court ruled many of Trump's tariffs were illegal, and that he should first have sought the approval of Congress. But while that ruling applied to the 10% rate Trump has applied to products from across the world, it did not apply to the higher 25% rate he has imposed on cars, steel and aluminium. Downing Street has decided to continue negotiating with the US as if the court ruling did not apply, not least because British officials believe it is likely to be struck out by the supreme court, which is dominated by conservatives. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion On Friday night, Trump unexpectedly announced he would be doubling foreign tariffs on steel and aluminium imports to 50%. It was not immediately clear how the announcement would affect the trade agreement negotiated earlier this month that saw tariffs on UK steel and aluminium reduced to zero. Last week, a UK team landed in Washington, including the prime minister's business adviser, Varun Chandra, the business department's head of trade relations, Kate Joseph, and the deputy national security adviser, Jonathan Black. Michael Ellam, the senior Cabinet Office official who played a major role in getting the deal signed, is now concentrating on the EU reset deal, one source said. The team spent much of last week talking to Howard Lutnick, the US commerce secretary, Jamieson Greer, the US trade representative, and Brooke Rollins, the US agriculture secretary. Rollins has been pushing for the UK to open up to more US agricultural and food products, though Starmer has insisted he is not willing to reduce welfare and safety standards to do so. Officials are hoping car tariffs will be dropped in the next two weeks, while steel and aluminium ones could take a few weeks longer. They also believe the US will reduce tariffs on British-made aeroplane parts almost to zero, having promised to give the UK a 'significantly preferential outcome' when deciding tariffs on future products. Discussions about pharmaceutical products, which account for approximately £7bn worth of exports to the US, are still going on, however, given Trump has not yet said what tariffs he intends to impose on the sector. The talks with the US are continuing at the same time as officials get closer to a controversial £1.6bn trade deal with Gulf countries. The Guardian revealed on Friday that that deal contained no concrete provisions on human rights, modern slavery or the environment.
CTV News
09-05-2025
- Business
- CTV News
CTV National News: What the U.S.-U.K. trade deal mean for Canada
CTV National News: What the U.S.-U.K. trade deal mean for Canada Vassy Kapelos says Canadian officials are taking the U.S.-U.K. trade deal as a 'somewhat positive sign' for their own trade negotiations.
CBC
08-05-2025
- Automotive
- CBC
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.
Reuters
08-05-2025
- Business
- Reuters
Britain's farmers welcome no weakening of import standards in US-UK deal
LONDON, May 8 (Reuters) - Britain's farmers union gave Thursday's U.S.-UK economic deal a mixed reception, welcoming the retention of British food standards on U.S. imports and reciprocal market access for beef, but flagging concern over a removal of tariffs on bioethanol. The deal gave UK farmers a U.S. quota for beef of 13,000 metric tonnes, which the National Farmers Union said was a positive. Under the deal, U.S. farmers will have the same quota for sales into Britain. Crucially there will be no weakening of UK food standards on U.S. beef imports, which was a red line for the union and an election manifesto pledge for the Labour government. That means U.S. beef bred with growth hormones still won't be allowed into the UK. 'We appreciate the government's efforts in listening to our concerns, particularly around maintaining high standards, protecting sensitive agricultural sectors and securing reciprocal access for beef," NFU President Tom Bradshaw said. Brooke Rollins, U.S. Secretary of Agriculture, said the deal would "exponentially increase" U.S. beef exports to Britain. However, with little price differential between British produced beef and U.S. beef that does meet UK standards, the U.S. product could struggle to find a UK market. Finding favour with the UK consumer may also be a tough task. Currently 100% of the fresh beef sold by Britain's two biggest supermarket groups - Tesco (TSCO.L), opens new tab and Sainsbury's (SBRY.L), opens new tab - is British and Irish. Bradshaw also said he was concerned that the U.S. had been given full access to Britain's market for bioethanol, which is used to produce beer. "Two agricultural sectors have been singled out to shoulder the heavy burden of the removal of tariffs for other industries in the economy," he added.
CNN
08-05-2025
- Business
- CNN
Live updates: Trump announces trade deal announcement with UK
Update: Date: Title: Dow surges 650 points as Trump announces US-UK trade deal, strikes positive tone on China Content: US stocks gained as President Donald Trump announced a trade deal with the United Kingdom during a news conference at the White House. The Dow was up 650 points, or 1.59%. The broader S&P 500 gained 1.56%. The tech-heavy Nasdaq Composite rose 2%. US stocks extended their gains as Trump struck a positive tone on upcoming trade talks with China. Stocks had initially wavered as Trump announced the US-UK trade deal, before surging higher as Trump said he expects a 'good weekend' of trade talks with China. Trump also urged investors to buy stocks. 'You better go out and buy stock now,' the president said. 'Let me tell you, this country will be like a rocket ship that goes straight up.' Wall Street is eager for tariff rates to come down, and investors will scrutinize the details of trade deals. 'This does not provide the clarity necessary to lift the fog of uncertainty created by a trade war of choice.' Joe Brusuelas, chief economist for RSM, in a post on X. Jay Hatfield, chief executive at Infrastructure Capital Advisors, said the US-UK trade deal looked 'fairly thin' but was nonetheless a positive development. The US dollar index, which measures the dollar's strength against six major foreign currencies, gained 0.9%. The British pound weakened against the dollar after briefly gaining. And London's FTSE 100 index closed lower by 0.3%. Explaining the dip, Susannah Streeter, head of money and markets at Hargreaves Lansdown, told CNN that investors view the deal as more favorable to the US than the UK. '10% tariffs are staying in place for great swathes of British exporters, but American companies selling into the UK will benefit from new cuts to duties,' she said. Elsewhere, bitcoin crossed $100,000 for the first time in three months and gold prices slid 1.6%. The yellow metal is considered a haven during uncertainty. Update: Date: Title: Done is better than perfect for British PM on UK-US trade deal Content: An imperfect deal is better than no deal, implied British Prime Minister Keir Starmer on Thursday following the announcement of a new US-UK trade agreement. Asked by reporters in England whether the deal marks an improvement on the US-UK trading relationship of six months ago, before Trump took office, Starmer replied: 'The question you should be asking is: Is it better than where we were yesterday?' Chris Beauchamp, chief market analyst at trading platform IG, told CNN on Thursday that 'it's a relief (for markets) to see some kind of deal signed, even if it leaves tariffs on the UK at 10% and doesn't remove them entirely.' Today's announcement is 'very light on detail,' he added, 'but investors are glad to see progress of any kind' — even with a trading partner that represents a small slice of US trade. Others were less reassured by the announcement. 'For the rest of the world, this (deal) could offer something of a blueprint,' Paul Ashworth, chief North America economist at Capital Economics, wrote in a note on Thursday. 'But countries being threatened with even higher reciprocal tariffs would presumably have to offer more that (sic) the UK, which only ever faced the 10% minimum.' Michael Pearce, deputy chief economist at Oxford Economics, wrote in a note that the two sides had steered clear of negotiating on contentious issues such as opening UK health care markets to American providers. 'That fits with the broader picture that deep and comprehensive trade deals are difficult to achieve,' he said. Update: Date: Title: Trump claims US port traffic slowdown "means we lose less money" and is a "good thing" Content: Ports across the United States, especially ones on the West Coast that receive shipments from China, are seeing a sharp decline in shipping volume since President Donald Trump levied a slew of tariffs on other nations last month. The steepest rate was the 145% tariff enacted across nearly all Chinese goods. Because of those tariffs, American businesses are canceling orders from China. As a result, that's beginning to spark fears of shortages. Trump, however, does not appear to be the least bit concerned. 'That means we lose less money,' Trump told reporters in the Oval Office on Thursday, shortly after announcing a trade deal with the United Kingdom. Trump has taken particular issue with the trade imbalance between the US and China, given the US buys significantly more from China. The slowdown at ports, he added, is 'a good thing, not a bad thing.' Update: Date: Title: Is this a 'full and comprehensive' trade deal? Content: President Donald Trump touted Thursday's agreement with Britain as a 'full and comprehensive' pact — but what was announced is more of a framework, which enables each country to claim some tariff carve-outs while leaving much of the detail to be figured out later. For Britain, the deal undoes the damage of three levies Trump brought in during his first months in charge: US tariffs on cars will be reduced from 27.5% to 10% for 100,000 British-made vehicles per year, and steel and aluminum tariffs will be scrapped entirely. The agreement gives each country a tariff-free quota for 13,000 metric tonnes of beef exports, which Starmer said will not be accompanied by any reduction in Britain's food standards. The United States also gets better access to the UK market for ethanol. But beyond those scant details, plus some hints of further work on technology laws and movie production, neither Trump nor Starmer spelled out how the two countries' trading relationship will significantly improve in the short term. What will not change is Britain's digital services tax on tech giants. Also unaddressed was Trump's recent threat of tariffs on movies produced outside America — Britain boasts a significant film industry and offers tax breaks that encourage many US studios to shoot productions at studios like Pinewood and Shepperton. Based on details announced so far, there appears to be plenty of work remaining until either London or Washington can claim to have reached a 'full and comprehensive' trade deal. Update: Date: Title: "He's not in love with me," Trump says of Fed Chair Powell Content: President Donald Trump isn't letting up on his harsh criticism of Federal Reserve Chair Jerome Powell. After announcing his 'breakthrough' trade agreement with the United Kingdom on Thursday, Trump from the Oval Office continued to slam the Fed leader for not lowering interest rates quickly enough. While speaking with reporters after his announcement, Trump was asked if he'd ever call a meeting with Powell, to which he responded: 'I could call him for a meeting but it's like talking to a wall.' On Wednesday, after the Fed announced it will continue to hold interest rates steady, Powell said he hasn't met with Trump since the president was sworn in for his second term, saying that he is never one to initiate a meeting with a US president. 'The Bank of England cut, China cut, everybody's cutting (interest rates) but him,' Trump said Thrusday. 'He's always too late.' 'In this case it's not going to matter that much because our country is so strong, we're so powerful in terms of economic strength.' 'He's not in love with me,' Trump said about Powell. Update: Date: Title: White House releases fact sheet on UK trade deal Content: President Donald Trump and United Kingdom Prime Minister Keir Starmer offered few details on what's actually included in the trade deal they worked out on Thursday. However, the closest sense of what's included came from a fact sheet the White House released as Trump addressed reporters from the Oval Office. 'This trade deal will significantly expand US market access in the UK, creating a $5 billion opportunity for new exports for US farmers, ranchers, and producers,' the fact sheet said. It's unclear if that implies the UK committed to buying an additional $5 billion worth of US goods, however. The sheet confirmed that the 10% tariff Trump levied on the UK last month will remain in effect. The deal appears to center predominantly around cars, the US' sixth-top export to the UK and the UK's top export to the US, according to data from the Commerce Department. 'Under the deal, the first 100,000 vehicles imported into the US by UK car manufacturers each year are subject to the reciprocal rate of 10% and any additional vehicles each year are subject to 25% rates,' the fact sheet states. That's a change from the 25% tariff in place for foreign cars shipped to the US. The fact sheet also suggested that aluminum imports from the UK, which are currently subject to the global 25% tariff rate, could be modified. Update: Date: Title: What's in the deal Content: President Donald Trump on Thursday called the negotiations between the United States and the United Kingdom a 'huge deal' but didn't announce many concrete details in the Oval Office. Instead, he offered broad strokes. Leaders of both countries stressed that there were still some details in flux. British Prime Minister Keir Starmer said the details would be 'ironed out' over time. But the outlines of that announcement could develop a concrete pathway to a broader trade pact. Some aspects of the negotiations, however, became clear Thursday. Commerce Secretary Howard Lutnick said the United Kingdom would reduce trade barriers of several agricultural products, including ethanol and beef, and machinery to the United States. Lutnick added that a 10% tariff on all UK imports will remain in place. Agriculture Secretary Brooke Rollins said the tariffs on ethanol will be reduced to 'zero,' adding that the deal will also result in higher US beef exports. Britain will also be able to send 100,000 cars into the United States at a 10% tariff rate, reduced from the 25% autos tariffs Trump imposed on foreign cars, Lutnick announced. The UK will also join the US in imposing 25% tariffs on foreign steel and aluminum, creating a joint tariff agreement that will create a free trade zone for those metals between the two countries. Pharmaceuticals will also be exempt from tariffs between the two countries. Prime Minister Keir Starmer said the deal will 'remove tariffs on British steel and aluminium, reducing them to zero,' and will 'grant unprecedented access for British farmers without compromising our high standards,' during a press conference in England, Thursday. According to industry data, last year Britain sent £370 million ($492 million) worth of steel to the United States, accounting for 9% of the United Kingdom's total steel exports. Update: Date: Title: UK's Starmer confirms automobile tariff decrease, says steel and aluminum levies will be removed Content: The US-UK trade deal will cut tariffs on British automobiles from 27.5% to 10% for 100,000 vehicles every year, Prime Minister Keir Starmer said during a press conference in England Thursday. 'It will remove tariffs on British's steel and aluminium, reducing them to zero,' and will 'grant unprecedented access for British farmers without compromising our high standards,' Starmer also said. According to industry data, last year Britain sent £370 million ($492 million) worth of steel to the United States, accounting for 9% of the United Kingdom's total steel exports. Speaking at a Jaguar Land Rover plant in the West Midlands region, Starmer added: 'We're sending a message to the world that Britain is open for business: seeking trade agreements with India on Tuesday, with the US today and working to boost trade with other partners too, including of course the EU.' Starmer defended the relationship he has built with President Donald Trump. 'In recent years an idea's taken hold that you sometimes show your strength by rejecting your allies. That you shut the door, put the phone down, storm off,' he said. 'I've had plenty of people urging me to do that, rather than stay in the room and fight for the interests of our country … That's not how this government operates.' Update: Date: Title: Trump suggests the UK got a good deal, but tariffs could rise for other countries Content: The US plans to keep a 10% base tariff in place as part of its planned trade agreement with the United Kingdom. That's not a template for future deals, President Donald Trump said Thursday from the Oval Office. 'That's a low number,' he said. 'They made a good deal.' Trump said that tariff rates could be 'much higher' for other countries, because 'they have massive trade surpluses and, in many cases, they didn't treat us right.' Trump on April 9 paused for 90 days 'reciprocal' tariffs as high as 50% on dozens of countries. For other countries, including the UK, a baseline 10% tariff on all goods coming into the United States was imposed. Trump said that 10% rate is non-negotiable. But Thursday's comments suggest that the negotiations with countries subject to the delayed reciprocal tariffs wouldn't be able to get rid of those higher tariffs entirely. 'Overwhelmingly the most important fact about today's trade deal is that the 10% across the board tariffs are staying. Tiny tweaks here and there with some trading partners won't change that,' said Justin Wolfers, professor of economics at the University of Michigan. 'The US is a high tariff country for the foreseeable future, and the trade war continues.' Update: Date: Title: Trump says he's willing to talk to China's Xi, depending on how weekend talks go Content: For the first time since President Donald Trump escalated the trade war with China by placing a minimum 145% tariff on most goods from there, Trump said he'd be willing to meet with Chinese President Xi Jinping. 'I might, yeah, sure, depending on what Scott says,' Trump replied to a reporter who inquired about whether he would talk to Xi after Treasury Secretary Scott Bessent and other US officials meet with Chinese officials this weekend. Trump also said he expected that meeting to be 'very substantive.' Update: Date: Title: Trump says tariffs on China "can't go any higher" Content: Ahead of the first formal round of trade talks set to occur between the United States and China over the weekend, President Donald Trump signaled he won't consider levying even tariffs on Chinese goods. Currently, most Chinese exports to the US face a minimum 145% tariffs. 'You can't get any higher. It's at 145 so we know it's coming down,' Trump said Thursday speaking in the Oval Office after announce a trade agreement with the United Kingdom. Meanwhile, China has placed a minimum tariff of 125% on most goods from the US. Update: Date: Title: Trump: "China very much wants to make a deal" Content: There are more deals to come on the trade front, President Donald Trump said Thursday from the Oval Office after announcing a bilateral trade deal with the United Kingdom. Trump said there are 'numerous' deals in the works, noting that Treasury Secretary Scott Bessent will meet with Chinese counterparts in Switzerland this weekend. 'China very much wants to make a deal,' Trump said. 'We'll see how that works out.' Update: Date: Title: Lutnick says US-UK trade deal will bring in billions for US companies Content: US Commerce Secretary Howard Lutnick said Thursday after President Donald Trump announced his trade deal with the UK that the increased market access for US exporters will bring in billions of dollars. 'They've agreed to open their markets and that will add $5 billion of opportunity to American exporters,' Lutnick said from the Oval Office. 'We still have a 10% tariff on, which will produce $6 billion in revenue for the United States.' Lutnick said the deal won't weigh on the UK economy and that the country's workers won't be negatively affected by the deal. He added that the deal means the UK can send 100,000 cars into the United States and 'only pay a 10% tariff.' Machinery and transport equipment were the main category of goods exports from the UK to the US in 2023, worth £27.2 billion ($36.2 billion), based on official UK data. This included £6.4 billion worth of car exports. The US was the biggest foreign buyer of British cars. Update: Date: Title: British ambassador to US says Trump called Starmer in "typical 11th-hour intervention" Content: Speaking in the Oval Office alongside President Donald Trump and members of his Cabinet, British Ambassador to the United States Peter Mandelson said Trump called United Kingdom Prime Minister Keir Starmer in a 'very typical, 11th-hour intervention.' He also said Trump was 'demanding even more out of this deal than any of us expected.' Update: Date: Title: Starmer says details of deal still need "ironing out" Content: British Prime Minister Keir Starmer has told President Donald Trump that their countries need to 'finish ironing out some of the details' of their trade deal but they have 'built an incredible platform for the future.' Starmer dialed in to the Oval Office, where Trump was meeting with journalists, telling him: 'This is going to boost trade between and across our countries.' 'With this president and this prime minister we've managed to achieve what many people have tried to achieve for many years,' Starmer said, adding that 'it feels completely historic.' 'Yes, we can finish ironing out some of the details, but there's a fantastic platform here,' he said. Calling him 'Donald,' Starmer praised the president's leadership and talked up the relationship between the two countries on the 80th anniversary of Victory in Europe Day. 'On that day the US and the UK stood together as the closest of allies,' Starmer said. 'That close relationship has endured over those 80 years.' Starmer will hold a press conference at a Jaguar Land Rover plant in Solihull, England, shortly. Update: Date: Title: A British airline will announce a $10 billion purchase of Boeing planes today, Lutnick says Content: Commerce Secretary Howard Lutnick in the Oval Office Thursday previewed a massive looming deal between a UK airline and Boeing. Lutnick declined to announce which airline would purchase the planes, but he said it would be a $10 billion order. Irish airline Ryanair said last month it would consider canceling a large order of Boeing planes if US tariffs remained in place. Shares of Boeing rose 3% Thursday. The company has said tariffs could hurt its already-battered business, but CEO Kelly Ortberg said last month the company has been in constant discussions with the administration in an effort to ease its trade burden. Update: Date: Title: Trump calls Thursday "an incredible day for America" Content: In a Truth Social post that was delivered while President Donald Trump was on a phone call with UK Prime Minister Keir Starmer, Trump called the trade deal with the UK 'historic,' making today 'an incredible day for America.' 'Together with our strong Ally, the United Kingdom, we have reached the first, historic Trade Deal since Liberation Day,' Trump said in the post. 'This Deal shows that if you respect America, and bring serious proposals to the table, America is OPEN FOR BUSINESS. Many more to come — STAY TUNED!' Trump predicted the United States will raise $6 billion from the 10% universal tariff that remains on the United Kingdom and $5 billion in 'new export opportunities' for American ranchers, farmers and producers. Update: Date: Title: The US-UK trade deal is a major diplomatic win for the UK government Content: The US-UK trade deal unveiled Thursday is a major diplomatic victory for the UK government and appears to vindicate the friendly, cautious relationship UK Prime Minister Keir Starmer has built with US President Donald Trump. Starmer has resisted criticizing the president even when Trump has outraged the rest of Westminster — a tariff carve-out was the prize Starmer sought above all others. A broader trade pact with Washington, similar to the UK-India pact agreed earlier this week, has been chased by successive post-Brexit governments but has proven stubbornly elusive. The words of former US President Barack Obama in 2016 — that London would be at the 'back of the queue' for a deal if it voted to leave the European Union — have haunted UK negotiators. A decade later, it appears Britain has fought its way to the front. But there is still work to do. Starmer has taken on a balancing act in his first year in charge, seeking to foster closer relations with the United States, Europe and China. Each relationship brings with it economic promise for a country plagued by a decade of low growth. But managing partnerships with competing powers comes with risks for a premier finding his feet on the global stage. Starmer's next priority will be an agreement with Brussels that loosens some of the shackles of Brexit — and polling suggests that Britons favor closer ties with Europe than with Trump's administration. Update: Date: Title: UK prime minister calls in to Trump's press conference Content: UK Prime Minister Keir Starmer called in to President Donald Trump's news conference Thursday to praise his negotiating team and to say 'this is going to boost trade between and across our countries.' Starmer said he will host his own press conference in the UK shortly. Starmer and Trump last met during a visit to the White House in February. The United States is the biggest market for UK goods exports, taking more than 30% of the shipments last year, according to official data. Update: Date: Title: Trump announces trade deal with the UK Content: President Donald Trump on Thursday unveiled the first trade deal of his second term, with the United Kingdom, in a significant milestone of his ever-evolving trade war. Trump said the deal means the UK will 'fast-track' Americans goods through its customs processes, though he said 'we can finish ironing out some of the details.' 'With this deal the UK joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade,' Trump said in a news conference Thursday from the Oval Office. 'The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all products produced by our great farmers.' The deal comes a month after the Trump administration announced massive tariffs on dozens of countries, including the UK, seeking to address what Trump deems as unfair trade. Those historic tariff hikes were delayed until July, after going into effect for mere hours, to allow the administration to negotiate deals with foreign counties. Trump last week said trade deals with South Korea, India and Japan are imminent, as well. Trump first teased the announcement in a post on his social media website Truth Social on Wednesday. Update: Date: Title: The US ran a $12 billion trade surplus with the UK last year Content: One of the likely reasons why the first trade agreement President Donald Trump secured in his second term was with the United Kingdom is because the United States runs a trade surplus with that country. Last year, the US exported nearly $80 billion worth of goods to the UK, according to US Commerce Department data. Meanwhile, the UK exported $68 billion worth of goods to the US. That means the US had a $12 billion trade surplus with the UK. By contrast, many of the countries the Trump administration is trying to secure deals with are ones that run a deficit, meaning the US imports more from those countries than it exports. Update: Date: Title: Where the UK stacks up on trade with the US Content: Update: Date: Title: Goldman Sachs warns key inflation gauge could hit nearly 4% by Christmas Content: President Donald Trump's global trade war will likely undo much of the progress in the war on inflation, Goldman Sachs warns. The Wall Street bank told clients in a Wednesday report that a key inflation measure is expected to surge in the coming months because of a toxic combination of sky-high tariffs and the weakening US dollar. Goldman Sachs now sees annual core inflation (excluding food and energy) accelerating from 2.6% in March to 3.8% in December. That's based on the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's go-to inflation gauge. Goldman Sachs is calling for a much bigger boost to prices than what the Fed forecasted in March, before the biggest tariffs were announced. At the time, the Fed expected core PCE inflation of 2.8% in December. Worse, Goldman Sachs expects annual core goods inflation will skyrocket from just 0.4% in March to 6.3% in December as 'prohibitively high' tariffs on China shifts demand to countries with higher production costs but lower US tariffs. By December, Goldman Sachs forecasts large price increases for used vehicles (+8.3%), household appliances (+7.8%), video/audio/computers (+7.7%). Jewelry/watches (+5.9%) and pharma/medical (+7.8%). Even as the White House downplays the risk of tariff-driven sticker shock, Goldman Sachs calculates that US tariffs will boost core PCE by a significant amount: 2.25%. 'On the eve of the implementation of large tariffs, the inflation problem in the US appeared solved,' Goldman Sachs economists led by Jan Hatzius wrote in the report. 'However, in the coming inflation readings, the impact of tariffs will reverse that progress.' Update: Date: Title: Americans have rushed to beat Trump's tariffs Content: President Donald Trump's aggressive tariff regime is widely expected to jack up prices in the US. That has American consumers and businesses rushing to buy what they can to avoid that sticker shock. Retail sales surged 1.4% in March, the strongest monthly gain since January 2023, which was largely driven by a car-buying frenzy that economists attributed to consumers trying to get ahead of Trump's 25% tariff on imported cars, which went into effect in April. Additional levies on auto parts went into effect earlier this month. Businesses also haven't wasted any time. Gross domestic product, the broadest measure of economic output, declined at an annualized rate of 0.3% in the beginning of the year, the first quarterly contraction since 2022, on a surge in imports that far outstripped exports, subtracting from GDP. Business investment was up in the first quarter for the same reason. But those brief buying sprints will eventually fade — and it's unclear what any trade deals will mean for consumer spending and business investment moving forward. Update: Date: Title: US stocks open higher as US-UK trade deal announcement nears Content: US stocks opened higher Thursday ahead of President Donald Trump's unveiling of a trade deal with the United Kingdom. The Dow was up 250 points, or 0.6%. The broader S&P 500 rose 0.73% and the tech-heavy Nasdaq Composite gained 1.07%. It's been one month since Trump announced a 90-day pause on 'reciprocal' tariffs on countries except China, and investors are hopeful for trade deal announcements that might soften the blow of the impact of Trump's tariffs. The market's reaction could largely depend on how similar or different trade deals are compared to Trump's initial plan for massive tariffs. Thierry Wizman, global FX and rates strategist at Macquarie, said in a Thursday note that the outlook for the US tariff regime and how it impacts international trade continues to be the 'dominant driver of market direction and sentiment.' The three major US stock indexes are coming off a day in the green. Wall Street will look to extend that rally on hopes for easing trade tensions. Update: Date: Title: Trade deals could change the Fed's posture on interest rates Content: The Federal Reserve is signaling that it's perfectly comfortable keeping interest rates unchanged as it waits to see how President Donald Trump's trade war evolves. Officials have also said there's growing risk of Trump's tariffs sending both inflation and unemployment higher. But the Fed's outlook on the economy could change completely with the emergence of trade deals. Fed officials on Wednesday voted to keep their benchmark lending rate unchanged at a range of 4.25% to 4.5%, the third-straight rate pause since January. Bank of America economists said in an analyst note issued that same day that 'we don't see a path to cuts in 2025.' Still, Fed Chair Jerome Powell said Wednesday in his post-meeting news conference that trade deals have the potential to change Fed policymakers' view and expectations of the US economy. 'We are entering a new phase where the administration is entering into beginning talks with a number of our important trading partners and that has the potential to change the (economic) picture materially or not,' he said. Update: Date: Title: Europe seeks public comment on possible retaliation, targeting $107 billion worth of US imports Content: The European Union is seeking feedback from the public about a list of US imports that it could hit with higher tariffs if ongoing trade talks with the United States fail. The European Commission, the EU's executive arm, announced Thursday that the list under consideration comprises imports from the US worth a total of €95 billion ($107 billion) and covers a broad range of agricultural and industrial products, including bourbon, fish, airplanes and cars. Anyone who could be affected may provide feedback to the commission over the next four weeks, until June 10. 'Since the US imposed its unjustified and harmful tariffs, the EU has prioritized finding a mutually beneficial and balanced solution through negotiations,' the commission said in a statement, noting that potential countermeasures are being prepared 'in case these fail to deliver a satisfactory outcome.' Earlier this year, President Donald Trump announced 25% levies on all imports of steel, aluminum, cars and car parts and hit the EU with 20% 'reciprocal' tariffs on all other goods – although the latter have been temporarily reduced to 10%, in line with new tariffs on virtually all goods entering the US. Last month, the EU said it will impose retaliatory tariffs on American toilet paper, soybeans, eye makeup and hundreds of other products if talks with the US over its tariffs aren't successful. Those planned countermeasures were in response to the steel and aluminum tariff increases. Update: Date: Title: Bank of England hopes the forthcoming US-UK trade deal 'will be the first of many' for countries Content: Bank of England Governor Andrew Bailey said Thursday the central bank welcomes reports that the United Kingdom and the United States are set to announce a trade deal later in the day. Speaking to reporters Thursday, Bailey said a deal 'will help to reduce uncertainty.' He said the UK is 'a very open economy' that is affected by the consequences of President Donald Trump's tariffs and trade policies applied to other countries. 'I hope the UK agreement, if it is indeed announced this afternoon, will be the first of many,' Bailey added. Earlier Thursday the Bank of England said it is cutting its main interest rate by a quarter point, citing lower inflation. The move, which had been widely expected, brings the main cost of borrowing in Britain to 4.25%. It is the fourth cut the central bank has made since it started reducing rates in August last year. Central bankers noted that 'uncertainty surrounding global trade policies has intensified' since President Donald Trump's tariffs have ignited a trade war in recent weeks. 'Prospects for global growth have weakened as a result of this uncertainty and new tariff announcements, although the negative impacts on UK growth and inflation are likely to be smaller,' the central bank said. Update: Date: Title: Agriculture secretary says 'agreement in concept' with UK will help farmers Content: Secretary of Agriculture Brooke Rollins said Thursday the 'major' deal with the United Kingdom that President Donald Trump has teased is 'an agreement in concept,' and that more details still need to be finalized. 'I don't want to get ahead of the president. You'll hear more about it in a couple of hours,' Rollins told Fox Business. 'But this is going to be very, very good for our farmers and for our ranchers that have long suffered as we begin to realign.' 'Again, more details coming. It is an agreement in concept. There's a lot of details to be worked out,' the secretary said. Rollins also announced she will be traveling to the UK on Sunday. 'I'll be there all next week as we continue to push America First around the world,' she said. When asked about the purpose of the trip, Rollins responded, 'We'll obviously be talking a lot about the deal that is being announced today.' Update: Date: Title: Trade announcement takes some UK officials by surprise Content: UK officials have expressed keen interest in a wide-ranging trade deal, but in recent weeks have taken a more targeted approach, pressing the administration on market access and options to ease President Donald Trump's 25% auto and steel tariffs. Trump's announcement Thursday morning is expected to grant relief on those tariff burdens, a US and UK official with direct knowledge of the matter told CNN. UK officials have proposed easing digital tax levies on large US companies and a concrete negotiating pathway to a more wide-ranging deal, the people said. The announcement surprised some UK officials, who viewed recent weeks of talks as productive, but not reflective of an imminent agreement. Trump's lead trade negotiators have been primarily focused on talks with Indo-Pacific trade delegations and the administration's broader trade operation has been stretched exceedingly thin in the wake of Trump's decision to pause the reciprocal tariff rate regime for 90 days. US officials described the rapid push towards an announcement as a reflection of Trump's view of the UK offer as well as his longstanding regard for the 'special relationship' underpinning the two close allies. He's also quickly developed an appreciation for Starmer, one of the people said. Starmer will not be with Trump for the announcement due to existing schedule commitments. Update: Date: Title: Trump's deal with the UK will be limited in scope and maintain America's 10% universal tariff Content: President Donald Trump's trade announcement with the UK will be limited in scope, heavy on future commitments and leave the existing 10% universal tariffs in place, according to a US and UK official. The officials stressed that there were still some details in flux and nothing would be finalized until Trump's announcement. But the outlines include a move to ease Trump's auto and steel tariffs and a more defined pathway to a broader trade pact. US and UK officials have been in regular contact about pathways to a trade agreement for several months — even before Trump's April 2 'reciprocal' tariff announcement, a US and UK official with direct knowledge of the matter told CNN. UK Prime Minister Keir Starmer has made the pursuit of a deal with Trump a key component of the bilateral relationship and made a point of elevating trade as key focus in his closed-door discussions with Trump during a visit to the White House in February. Update: Date: Title: US markets set to rally as "major trade deal" with UK looms Content: Stock futures were higher Thursday morning as investors awaited President Donald Trump's 'major trade deal' with the United Kingdom, set to be formally announced at 10 a.m. ET. Dow futures were up 300 points and S&P 500 futures were up 0.9%. Futures tied to the Nasdaq 100 gained 1.24%. Wall Street in recent weeks has been paralyzed by a lack of clarity around Trump's trade policy, and investors are now hoping the trade deal with the UK might be the first in a series of announcements that cause tariff rates to drop. 'The market is intensely focused on where the tariff rates end up, and it's bouncing around … as those assessments change,' said Jed Ellerbroek, portfolio manager at Argent Capital Management. The three major US stock indexes are coming off a day in the green. Wall Street will look to extend that rally on hopes for easing trade tensions. 'Many other deals, which are in serious stages of negotiation, to follow!' Trump wrote on social media Thursday morning. The yield on the 10-year Treasury note rose to 4.316%. The US dollar slightly strengthened against other major currencies. Bitcoin rose and was approaching the $100,000 level after surging more than 2.5% in the past day. Update: Date: Title: Trump touts 'major' UK and US deal in early morning Thursday post Content: President Donald Trump announced a significant development between the United States and the United Kingdom, calling it a 'very big and exciting day' for both nations in a post on social media early Thursday. 'This should be a very big and exciting day for the United States of America and the United Kingdom. Press Conference at The Oval Office, 10A.M. Thank you!' Trump wrote on Truth Social. The president emphasized that the deal set to be announced today is a significant step in strengthening ties between the United States and the United Kingdom, saying it will 'cement' the relationship for years to come. In a second post, Trump also called it a 'great honor' to have the UK as the first official agreement and signaled that more international deals are on the horizon. '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!' Trump wrote on Truth Social. Trump first teased a major announcement in a post on Truth Social on Wednesday saying he would announce a 'MAJOR TRADE DEAL' in the Oval Office at 10 a.m. ET. The president did not disclose which country he would be making a deal with, in his first post. CNN, however, reported on Wednesday night that the deal will be with the United Kingdom, according to a source familiar with the administration's plans. This would be the first of such agreement since President Trump imposed levies on countries around the world. Update: Date: Title: British prime minister confirms US-UK trade announcement Content: British Prime Minister Keir Starmer confirmed he would make a statement about the outcome of trade talks with the US later today. Speaking at a defense industry conference in London, he said: 'Talks with the US have been ongoing and you'll hear more from me about that later today.' 'But make no mistake, I will always act in our national interest, for workers, businesses and families, to deliver security and renewal for our country.' Update: Date: Title: Trump slams Jerome Powell as 'a fool' after the Fed refuses rate cuts Content: President Donald Trump took to social media Thursday to call Federal Reserve Chair Jerome Powell a 'fool, who doesn't have a clue' after the Fed rebuffed White House demands for a rate cut Wednesday. ''Too Late' Jerome Powell is a FOOL, who doesn't have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and 'eggs') down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF 'TOO LATE!' ENJOY!' Trump wrote in a Truth Social post. The Federal Reserve held interest rates steady on Wednesday, just weeks after Trump intensified his calls to lower borrowing costs and spoke of a potential 'termination' of Powell. Of course, there is inflation, though it has come down in recent months. While wholesale egg prices have tumbled, consumer egg prices hit all-time highs in March. And economists are warning that Trump's tariffs will likely lead to higher prices. Trump signaled during a recent 'Meet the Press' interview he likely won't try to fire Powell before his term expires next year. Update: Date: Title: Trump is expected to announce a "major trade deal" with the UK today Content: President Donald Trump teased a significant trade announcement to be announced today — a source familiar with the administration's plans tells CNN the deal will be with the United Kingdom. It's yet another sign of some possible relief from historically high tariffs that have threatened serious damage to the US and global economies. 'Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!' Trump posted last night on Truth Social. In his post, Trump didn't specify which country, but his administration has suggested it is in active negotiations with India, the United Kingdom, South Korea and Japan. Trump's top trade adviser, Peter Navarro, told CNN Tuesday that he suspected the UK may be the first country to sign a trade agreement with the United States. 'I don't know if it's going to be the UK first or India first, it's — we've got a little twist in the in this India story, so that might slow things down there, but I can assure the American people that there will be deals, and they will be very good deals for the American people,' Navarro said. For weeks, Trump officials have said they are talking to more than a dozen countries and are nearing a deal, but none have been announced so far. Trump has frequently said he is in no rush to sign a deal, claiming that countries have been 'ripping off' America for years and the high tariffs the United States has imposed will help balance trade. Read more.
