President Trump is trying to repair the economy after Biden destroyed it. This latest development could be one of the first major steps in getting things fixed.
And Donald Trump just made a deal that could be an absolute game-changer for the economy.
A New Era of Trade: US and UK Strike Historic Deal
In a landmark moment for international commerce, President Donald Trump announced on Thursday that the United States and the United Kingdom have agreed on the foundation of a transformative trade deal. This marks the first significant trade agreement since Trump’s bold “Liberation Day” tariff declaration last month, setting a dynamic tone for global economic relations.
Speaking from the Oval Office, Trump shared that the UK is poised to “open up the country” to a flood of American products, with a particular focus on agricultural goods like beef. The agreement, detailed in a spirited exchange with British Prime Minister Keir Starmer via speakerphone from London, signals a vibrant shift in transatlantic trade.
The deal retains the existing 10% tariff rate on British goods but offers the UK strategic flexibility on key exports like automobiles and aircraft components. In a nod to strengthened ties, the US has also extended an invitation for the UK to join an “economic security agreement,” fostering deeper collaboration.
“The UK was largely closed, very much closed to trade, and now it’s opened,” Trump declared, emphasizing the newfound opportunities for American exporters. While the agreement’s finer points are still being crafted, Trump hailed the 10% tariff as “probably the lowest” feasible rate for future bilateral negotiations, a figure notably higher than the average US tariff before his second term began.
A standout feature of the deal exempts 100,000 UK-manufactured cars from Trump’s new 25% global auto tariff, keeping them at the 10% rate. In return, the UK is slashing its ethanol fuel tariff from 19% to zero, unlocking a $700 million market for American corn-based fuel. The US, meanwhile, is eliminating tariffs on British airplane parts.
Aligning with Trump’s February directive, the UK will impose 25% tariffs on foreign steel and aluminum, a move the White House fact sheet calls “a new trading union for steel and aluminum.” This synchronized approach aims to bolster both nations’ industrial sectors.
“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 of the products produced by our great farmers,” Trump stated.
He highlighted the UK’s commitment to dismantling non-tariff barriers that have long hindered American goods, alongside streamlined customs processes to expedite exports without bureaucratic delays. “We’ll also receive new market access for American chemicals, machinery, and many other industrial products that weren’t allowed,” he added.
Questions linger about how the UK will address regulations on American beef produced with hormone enhancements or chlorine-washed poultry, practices currently restricted in the UK.
“We are going to discuss all these types of issues,” said US Trade Representative Jamieson Greer, stressing that regulations must be grounded in science. “The importing country, whether it’s us or them, you’ve got to follow the rules on those types of things.”
Trump remained optimistic, asserting, “We’ll have it all very conclusive, but the actual deal is a very conclusive one. We think just about everything’s been approved.” Commerce Secretary Howard Lutnick echoed this enthusiasm, noting, “They’ve agreed to open their markets, and that will add $5 billion of opportunity to American exporters … and we still have a 10% tariff which will produce $6 billion of revenue for the United States.”
From London, Starmer called the agreement “hugely important” for industries like car manufacturing, steel, and aluminum, as well as technology. “We can finish ironing out some of the details, but there’s a fantastic platform here,” he said.
he announcement builds on the warm rapport between Trump and Starmer, who met at the White House on February 27. However, Trump’s surprise at the deal’s progress as recently as Tuesday—when he responded to questions from the New York Post with, “Who? What? … What about the United Kingdom? … They’re offering us concessions? I hope so”—suggests the agreement came together swiftly.
Not all in Trump’s circle are fully convinced. One administration insider cautioned, “While it may be a good first step, ‘frameworks’ aren’t enough. There needs to be tangibles, specifics, and serious enforcement mechanisms. Let’s not overpromise and underdeliver.”
As the final terms take shape, this deal promises to reshape trade dynamics, offering American businesses unprecedented access to UK markets while reinforcing a strategic economic partnership across the Atlantic.
THE GOLDEN AGE: A HISTORIC TRADE DEAL 💰
“The deal includes billions of dollars of increased market access for American exports, especially in agriculture…” – President Donald J. Trump 🇺🇸 pic.twitter.com/XeDhMvwxFw
— The White House (@WhiteHouse) May 8, 2025
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