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Investing.com -- President Donald Trump confirmed a trade deal with the United Kingdom on Thursday.
It is the first deal since reciprocal tariffs were announced on April 2. Importantly, the 10% base tariff will remain for the U.K., providing a glimpse of a possible roadmap for future deals.
Trump and U.K. Prime Minister Keir Starmer confirmed the deal during a phone call broadcast live. Trump highlighted that the new deal will raise $6 billion in external revenue from the agreement and $5 billion in new export opportunities.
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The two sides also announced the creation of an aluminum and steel trading zone and a secure pharmaceutical supply chain.
“Today is an incredible day for America as we deliver our first Fair, Open, and Reciprocal Trade Deal — Something our past Presidents never cared about,” Trump stated in a post on Truth Social. “Together with our strong Ally, the United Kingdom, we have reached the first, historic Trade Deal since Liberation Day.”
As part of the deal, the U.K. has agreed to a $10 billion Boeing procurement deal. Shares of Boeing (NYSE:BA) rose more than 3% on Thursday.
The deal will provide a 10% tariff on a quota of 100,000 UK auto exports to the U.S. When answering a question, Trump said there is "a good commercial for Rolls-Royce (LON:RR) (OTC:RYCEY)."
U.S. Secretary of Agriculture Brooke Rollins said the deal will “exponentially increase” U.S. beef exports to the U.K.
However, in the U.K., Kemi Badenoch, leader of the Conservative Party, wrote in a post on X: "When Labour negotiates, Britain loses. We cut our tariffs — America tripled theirs. Keir Starmer called this ‘historic.’ It’s not historic, we’ve just been shafted!"
Reacting to the news, analysts at Capital Economics said in a note that the deal "reveals Trump’s desperation to show progress on trade."
"Along with the push to get trade talks with China underway too this weekend, this rush to demonstrate progress on ’deals’ reveals a rising desperation within the administration to rollback tariffs before they hit gross domestic product growth and inflation," wrote the firm. "That is still good news, however."
Meanwhile, commenting on a potential deal with China ahead of much-anticipated discussions between U.S. and Chinese officials in Switzerland this weekend, Trump said he may consider lowering the soaring current tariff rate of at least 145% on the country.
“Well, it could be. We’re going to see. Right now, you can’t get any higher [...] I think we’re going to have a very good relationship," Trump said.