Live Updates: Trump Announces ‘Tremendous’ Trade Deal with UK, Hails Major Win for U.S. Agriculture

President Donald Trump has announced what he calls a “tremendous trade deal” between the United States and the United Kingdom — the first formal trade agreement since he introduced sweeping global tariffs in April.

Speaking from the Oval Office on May 8, which he noted coincided with “Victory Day” commemorating the end of World War II, Trump said, “There could be no more perfect morning to reach this historic agreement.”

The deal, according to Trump, opens up UK markets to an estimated $5 billion in U.S. agricultural exports including beef and ethanol. “They’re opening up their country,” he said. “Their country is a little closed and we appreciate it.”

British Prime Minister Keir Starmer joined the announcement via speakerphone from the UK, calling it a “really fantastic, historic day” and emphasizing the economic boost the agreement will provide to both nations.

Key Deal Terms and Tariffs

Commerce Secretary Howard Lutnick confirmed that while the U.S. will maintain a 10% universal tariff on British goods, the UK will ease market access for U.S. products. The 25% tariff on imported cars will be reduced to 10% for the first 100,000 vehicles. Lutnick also said a major British airline is set to announce a $10 billion purchase of Boeing planes later today.

Trump said the UK also agreed to eliminate "non-tariff barriers" that he claimed unfairly restricted American goods.

Mixed Reactions

While Trump praised the deal as a “win-win,” experts expressed skepticism. Economist Justin Wolfers from the University of Michigan said the agreement is “not a major trade deal,” noting the UK accounts for just 3% of U.S. trade.

Senator Marco Rubio, however, praised the agreement, calling it “an important step toward fair and reciprocal trade.”

Market Response and Broader Trade Picture

Markets responded positively to the news. The Dow Jones rose 198 points, while the Nasdaq climbed over 1% in early trading.

The UK is the ninth-largest U.S. trading partner, far behind Canada, Mexico, and China. In 2024, U.S.-UK trade totaled roughly $148 billion in goods and services.

Broader Trade Agenda

Trump’s announcement comes amid broader efforts to reshape global trade. On May 6, he met with Canadian Prime Minister Mark Carney, and talks with China are expected to begin soon. Meanwhile, the Treasury Department imposed sanctions on four Chinese companies accused of helping Iran sell oil in violation of U.S. sanctions.

Treasury Secretary Scott Bessent said additional trade agreements could be announced soon. Negotiations are underway with 17 of the U.S.'s 18 major trading partners, with China talks slated to begin this week in Switzerland.

Despite the upbeat announcement, Trump expressed frustration with constant pressure to finalize deals: “We don’t have to sign deals. They want a piece of our market.”

As global negotiations continue, the administration insists more deals are on the horizon — but the scope and impact of the UK trade deal remain subject to debate.