Trump Announces ‘Tremendous Trade Deal’ With the U.K.
“Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement.”
President Donald Trump along with representatives from the United Kingdom a trade deal.
“This is very a special day because it’s victory day World War II… It’s just incredible that day is the same day we signed a tremendous trade deal for both countries,” said Trump.
The 10% reciprocal tariff is in effect. A few other notes from the White House:
Trump wrote on Truth Social:
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!
“The Golden Age of America is coming!” added Trump.
The U.S. placed a 10% reciprocal tariff on U.K. imports in April on top of the 25% global tariffs on cars, steel, and aluminum.
The U.K. responded with “tariffs on U.S. imports based on the World Trade Organization’s ‘Most Favored Nation’ or MFN rules.” More from Fox Business:
The U.K.’s average MFN applied tariff rate was 3.8% in 2023, according to the most recent data available. The UK has some high tariffs that affect U.S. exports, such as rates of up to 25% for some fish and seafood products, 10% for trucks, 10% for passenger vehicles, and up to 6.5% for certain mineral or chemical fertilizers.
The U.S. goods trade surplus with the U.K. was $11.9 billion in 2024 – a 17.4%, or $1.8 billion, increase over 2023.
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Comments
I wonder how Carney feels about this? lol
The US trading relationship between Canada and the UK is so disparate (a $90B deficit w/the former and a nearly $13B-surplus w/the later), Carney probably doesn’t think anything about this deal. If we strike a deal with a country that has an equal (or greater) trade imbalance – like Mexico, China, India, Japan, Germany, Ireland – that will get Carney’s attention.
Like a complete fool I imagine.
trump threw in free dental work to clinch the deal
and political asylum for anyone saying mean hurty things on facebook.
So where is Winston’s bust these days?
The Churchill bust is back on display in the Oval Office. Lincoln’s bust is displayed on our duly elected president’s Resolute Desk.
Here is the citation:
https://www.theartnewspaper.com/2025/01/21/controversial-bust-winston-churchill-oval-office-trump
“Under the deal, the first 100,000 vehicles imported into the U.S. 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 United States also recognizes the economic security measures taken by the UK to combat global steel excess capacity and will negotiate an alternative arrangement to the Section 232 tariffs on steel and aluminum.
This deal creates a new trading union for steel and aluminum.
This includes more than $700 million in ethanol exports and $250 million in other agricultural products, like beef.”
Followed by
“The U.K.’s average MFN applied tariff rate was 3.8% in 2023, according to the most recent data available. The UK has some high tariffs that affect U.S. exports, such as rates of up to 25% for some fish and seafood products, 10% for trucks, 10% for passenger vehicles, and up to 6.5% for certain mineral or chemical fertilizers.”
In other words no improvement. Britain has no steel industry the last British steel mill shut down this year. Very minor levels of tariff got replaced by something that could have been done behind closed doors without hurting ordinary Americans.
This is a victory for America because it is hopefully the end of the trade war.
Not a lot to get excited about on either side of this trade deal.
I suspect several other announcements following the UK. Given our historical ties they wanted to let the UK have first bite at the apple. Good news, demonstrated the proof of.concentrate for the Trump Tariff regime and keeps the 10% universal tariff in place as an additional revenue source.
You do know that American consumers who buy British made goods will effectively be paying Trump’s 10% universal tariff in increased costs. That is why Powell sounded the warning about stagflation. High tariffs tend to slow down world economies and increase the prices of consumer goods.
But all taxes do this.
At the end of the day, the money vacuums at whichever capital is yours must be satisfied.
Indeed I do know that the consumers who voluntarily choose to spend money on foreign goods, produced in foreign Nations by foreign workers instead of choosing to buy products Made in USA by US workers will pay a premium.
Consumers do have choices and there are many variables both + and – that impact consumer decisions about product choice…this is simply one more. Of course if it causes consumers to buy Made in the USA instead then that puts money into the pockets of domestic US Businesses who can expand their production, hire additional shifts of workers, pay higher dividends to shareholders which allows the workers and shareholders to spend, save or invest the additional money from that. Then there’s the additional tax revenue Local, State Federal and increased revenue to SSI all from the increased domestic production and consumption.
By the way for the American Consumer this deal sucks it raises prices significantly on anything from the UK.
Do not expect the dollar to remain the currency reserve for very long if this is a sign of things to come expect other countries not named Israel to actively wean off the American Market including our currency.
Which currency will replace it in the near term? Not the Euro b/c they’d have to print enough additional Euro to float it as a reserve currency and open themselves up to China’s imports and 2nd/3rd world imports to become a reserve currency. Not China b/c nobody trusts them or their bogus economic system.
What we will see is continued buying of gold by central banks. Remember that this summer gold moves into place as an asset for financial sector reserves under the terms of Basel III capital requirements. Less so but still important is the increased acceptance of crypto and a few States and Nations beginning to hold it as part of their reserves.
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