Trump Announces Historic Trade Deal with UK

US President Donald Trump announced a trade framework with the United Kingdom, calling it an "achievement" that will remove barriers and expand market access for US imports.

"I am pleased to announce that we have reached a historic trade deal with the United Kingdom," Trump said Thursday in the Oval Office.

He added that the full details of the agreement will be discussed in the coming weeks. However, under the agreement, the UK will expedite its tariffs on US goods and reduce barriers on agricultural, chemical, energy, and industrial exports.

"The deal includes billions of dollars in increased market access for US exports, particularly in agriculture, significantly enhancing access for US beef, ethanol, and virtually all the products our great farmers produce," Trump said at a joint press conference with his British counterpart.

This announcement is Trump's first since imposing high tariffs on dozens of US trading partners. The president later temporarily suspended these tariffs to allow countries to reach agreements with the United States.

British Prime Minister Keir Starmer, who participated in the event via telephone, said: "This will boost trade between and through our two countries, and will help not only protect jobs, but also create new jobs by opening up market access."

The agreement sparked cautious optimism on Wall Street, with stocks rising and bonds falling amid hopes that the deal could serve as a model for future agreements. The S&P 500 index rose for a second day but retreated from its session highs, while Treasuries, gold, and safe-haven currencies lost momentum.

This agreement with the UK may provide a glimpse into the potential shape of future agreements with other economies. The agreement remains limited in scope and maintains a 10% basic tariff, according to Trade Minister Howard Lutnick.

Under the agreement, British car manufacturers will be allowed to ship 100,000 cars to the United States under a 10% tariff, instead of the 25% Trump imposed on car imports.

"For the UK automotive industry, this means tens of thousands of jobs that the president has agreed to protect," Lutnick told reporters.

Lutnick added, without naming the company, that Rolls-Royce aircraft engines and parts will be able to enter the US market duty-free, and a British airline will purchase $10 billion worth of Boeing aircraft.