President Donald Trump said more trade deals with the UK announced Thursday were coming up, with the US market taking an aggressive response.
The deal is the first major agreement since the president struck foreign countries with import taxes. Closed Bells, the S&P 500 was the 11th time in 13 days. The Dow added 254 points. Nasdaq rose 1.1%. Crude oil prices have risen. Bitcoin rose to $101,000.
The Treasury yields also rose.
The Trump administration agreed to buy the Boeing Jet and dump tariffs imposed on British steel and cars in exchange for providing American farmers with more access to the UK market.
“The transaction includes billions of dollars in market access for American exports, particularly in agriculture, and dramatically increases access to American beef, ethanol and all products produced by great farmers.” “The UK will reduce or eliminate many non-entalif barriers that unfairly discriminated against American products.”
Prime Minister Kiel said the deal would save jobs.
“This will boost trade with our country,” he said. “It’s not only protecting jobs, it’s creating jobs and opening up access to the market.”
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According to the White House, the trade deal will expand US market access in the UK and create a $5 billion opportunity for new exports to US farmers, ranchers and producers. This includes more than $700 million in ethanol exports and $250 million in other agricultural products such as beef.
Trump posted to the true society that “more” deals are ongoing.
On April 2, Trump announced so-called mutual tariffs on foreign countries. Seven days later, Trump suspended these higher mutual fees for 90 days, giving the trade team time to trade. However, Trump maintains a baseline tariff of 10% and applies to all countries, including the UK.
The president also slapped 25% tariffs on foreign cars and auto parts, but softened the hits of American carmakers through rebates. Trump also struck China with 145% tariffs on imports from the world’s second largest economy. China responded with a 125% obligation on US imports, essentially carrying out a frozen trade between the two superpowers. Trump has placed a 25% tariff on imported steel and aluminum.
Under the contract, the first 100,000 vehicles imported from British manufacturers each year are subject to a 10% rate. Additional vehicles each year are eligible for a higher 25% rate. The US will also negotiate an alternative arrangement with the UK on steel and aluminum.
Stocks recovered after news of the trading was destroyed, and as of Thursday afternoon all major US indices had risen.
The total US trade with the UK was estimated at $148 billion in 2024, according to the White House. The average applied agricultural tariff in the UK was 9.2%, and the average applied agricultural tariff in the US (before April 2) was 5%. The White House further said, “The UK is maintaining certain tariff and non-tariff barriers that restrict access to markets and create unfair playing field for American workers and businesses.” It noted UK tariffs above 125% on meat, poultry, dairy products and various food safety standards.
The UK is America’s ninth trading partner.
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Trump’s “liberation day” tariffs face legal challenges at home. This includes several challenges from multinational litigation and other groups, including groups representing small businesses in the US. Democrats have introduced legislation that exempts small businesses from tariffs. The US Chamber of Commerce and Industry I asked Trump will grant automatic exclusions to small business importers and establish a process for businesses to apply for exclusion if they can show that tariffs pose a risk to the employment of American workers, and provide exclusions for all products that cannot be produced or readily available in the United States.
Economists, businesses, and many public companies have warned that tariffs could raise prices for a wide range of consumer products.
Trump says he wants to restore manufacturing jobs that were lost to low-wage countries decades ago, shift tax burdens from US families and pay national debt.
Customs duties are taxes on imported goods. Importers can pay taxes and absorb losses or pass costs to consumers at a higher price.
Syndicated with permission from Central square.
