Donald Trump says U.K. is first trade deal under his tariff plan

President Trump said Thursday the U.S. struck a trade deal with the U.K. that would “cement” the countries’ relationship for years to come.

The deal, which will be detailed in a White House news conference, is the first of dozens of promised trade deals tied to Mr. Trump’s aggressive trade agenda.

“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,” Mr. Trump wrote on Truth Social. “Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement.”

Mr. Trump in April imposed a blanket 10% tariff on all imports and threatened heftier levies on countries that sell plenty of products to American consumers but don’t buy nearly as much from U.S. producers.

Mr. Trump paused the heftier levies for 90 days to allow time for negotiations. India, Japan and South Korea were out front in talks, but the British seem to have closed the first deal. 

“Many other deals, which are in serious stages of negotiation, to follow!” Mr. Trump said.

Dow Futures soared upon news of the deal. Investors have been anxiously awaiting word of progress on trade negotiations as tariffs begin to bite, with import shipments slowing down and stores threatening to increase prices.

The U.S. and China are locked in a trade war, with tariffs exceeding 100% on either side, and other deals could take time. 

But the breakthrough with the U.K. will be celebrated as a win by both sides.

U.K. Prime Minister Keir Starmer teased the announcement Thursday, calling the U.S. an indispensable ally and that “talks on a deal between our countries have been continuing at pace.”

Mr. Trump’s tariff plans have been driven by trade deficits, in which the U.S. imports far more from a country than what it sells to that country. 

However, the U.S. had a trade surplus with the U.K. of nearly $12 billion in 2024. 

The U.S. exported nearly $80 billion worth of goods while importing about $68 billion from the British, according to the U.S. Trade Representative.

For that reason, the U.K. only faced the baseline 10% tariff under Mr. Trump’s plan compared to heftier tariffs on countries with big trade imbalances with the U.S.

However, the British have stand-alone U.S. tariffs on things like steel, aluminum and cars, so any carve-outs from those levies under the deal would be a boon to the British side.

For the U.K., the deal should make it easier for the British to send drugs, cars, food and other goods to the U.S.

Earlier this week, the U.K., which officially exited the European Union in 2020, struck a major trade deal with India.

The EU, meanwhile, outlined a list of U.S. products Thursday that could be targeted with higher tariffs if the bloc and the U.S. are unable to reach a trade agreement.

The list of products worth 95 billion euros, or $107 billion, is designed to prod the U.S. into serious negotiations before Mr. Trump’s reciprocal tariffs are unfrozen. The list includes certain farm products and car and airplane parts, among other goods.