Trump Says He’s Willing to Talk to China’s Xi After Weekend Talks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump and British Prime Minister Keir Starmer announced a landmark U.S.-U.K. trade agreement Thursday, slashing tariffs and opening markets. The deal grants significant access for U.S. agriculture and auto exports while preserving Trump’s 10% universal import tariff. It sets the stage for broader international negotiations amid Trump’s evolving tariff-driven trade strategy.
U.S.-U.K. Trade Deal Quick Looks
- Agriculture Wins: UK to reduce tariffs on U.S. ethanol and beef to zero.
- Auto Exports: U.K. may ship 100,000 cars yearly at reduced 10% tariff.
- Steel and Aluminum: Tariffs on British metals dropped to zero under joint pact.
- Pharma Freed: Pharmaceuticals exempt from tariffs on both sides.
- Revenue Boost: U.S. expects $6B in tariff revenue, $5B in export gains.
- Baseline Stays: 10% universal import tariff remains in place for U.K.
- UK’s Gain: A diplomatic victory for Starmer after years of stalled deals.
- More to Come: Trump says deals with China, India, and others are close.
- Markets React: Stocks, dollar surge on optimism for easing trade tensions.
- Airline Order: $10B Boeing deal from a U.K. carrier teased by officials.
Deep Look: Trump and Starmer Forge Trade Milestone Amid Global Economic Shift
President Donald Trump and British Prime Minister Keir Starmer announced a sweeping new trade deal on Thursday—the first major bilateral agreement of Trump’s second term and a potential model for resolving tensions from his sweeping tariff policies.
During a joint call into the Oval Office press briefing, Starmer described the deal as a “historic platform” that will “boost trade between and across our countries.” Trump, speaking directly from the White House, called the pact “an incredible day for America” and a sign that “America is open for business.”
Key Deal Highlights
Commerce Secretary Howard Lutnick outlined the major concessions:
- Zero Tariffs on U.S. ethanol and beef entering Britain.
- Reduced Tariffs for U.K. car exports to the U.S. — 100,000 vehicles at 10%, down from 27.5%.
- Steel & Aluminum: A new free trade zone between the two allies eliminates tariffs on these metals.
- Pharmaceuticals: Now fully exempt from duties on both ends.
Trump emphasized that while the U.K. scored lower tariffs, the 10% universal import tariff on British goods remains intact, and would not necessarily apply to other nations. “That’s a low number,” he said. “They made a good deal.”
Starmer confirmed during a press conference at a Jaguar Land Rover plant that the U.K. would not compromise on food safety standards while gaining “unprecedented access” for British farmers to U.S. markets.
“In recent years, some have thought strength means slamming the door. This government doesn’t work that way,” Starmer added, defending his approach to diplomacy with Trump.
Market and Business Response
News of the deal sent Wall Street soaring.
- The Dow jumped 556 points, or 1.35%.
- The Nasdaq rose 1.75%, boosted by tech optimism tied to lower tariffs.
- The U.S. Dollar Index climbed 0.5%.
U.S. Trade Strategy: Tariffs Here to Stay?
Despite the fanfare, Trump reiterated that the 10% tariff baseline is not going away. “That’s non-negotiable,” he said, suggesting that other nations with large trade surpluses may face much higher rates, including up to 50% reciprocal tariffs.
Trump also addressed trade tensions with China, stating that he would be open to speaking with President Xi Jinping depending on the outcome of this weekend’s talks in Switzerland.
“China very much wants to make a deal,” Trump said. “We’ll see how that works out.”
Currently, the U.S. maintains 145% tariffs on most Chinese imports, while Beijing has imposed 125% tariffs on U.S. goods.
Starmer’s Big Win
The deal is seen as a diplomatic coup for Starmer, fulfilling a key post-Brexit priority after years of stalled progress. Former U.S. President Barack Obama’s warning in 2016 that the U.K. would be “at the back of the queue” post-Brexit now seems reversed.
Still, challenges remain. Starmer must balance warmer ties with the U.S. against voter demand for closer EU relations. He now turns his focus to trade talks with Brussels and India.
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