A major trade development has been confirmed by US President Donald Trump, who announced a full and comprehensive agreement with the United Kingdom on Thursday. The deal, made public through Trump's social media post, is being viewed as a key moment in reinforcing US-UK economic ties. Trump highlighted the longstanding relationship between the two nations and called the UK the ¡°first announcement¡± among several trade deals currently in negotiation.
In a post on Truth Social, Trump stated that the agreement would solidify ties between the US and the UK ¡°for many years to come.¡± He also expressed pride in choosing the UK as the first nation to finalise such a pact under his leadership, citing the shared history and alliance between the two nations. ¡°It is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!¡± Trump wrote. Earlier that day, he teased the announcement as a ¡°very big and exciting day¡± for both countries, and a press briefing was held at 10 AM ET.
The trade agreement comes after a turbulent period in US trade policy. Last month, Trump had introduced sweeping tariffs¡ª10 percent on most British imports and 25 percent on UK-made steel, aluminium, and vehicles. Although Britain avoided the most severe reciprocal penalties due to a 90-day pause, it still faced significant challenges, particularly in the automotive and steel sectors. The new deal aims to address these barriers, offering potential tariff reductions or eliminations that could help key British industries recover.
UK Prime Minister Keir Starmer stated the deal and mentioned that more information would be revealed in due course. Although the current agreement falls short of a large-scale free trade pact, it is expected to offer short-term relief to UK exporters. For the Starmer government, still navigating challenges from local election setbacks, the deal is being seen as a diplomatic boost and a way to show economic progress.
The agreement is expected to reduce or scrap tariffs on UK steel and vehicles, while ongoing discussions are likely in sectors such as technology and pharmaceuticals. Experts view this agreement as a confidence-building step for the UK¡¯s economy rather than a complete overhaul. The deal reflects a mutual interest in reviving economic cooperation and paves the way for further negotiations.
Though limited in scope, this trade pact is a timely diplomatic win for both nations during a sensitive economic phase.
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