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American Focus > Blog > Economy > US and UK seal first deal of Donald Trump’s trade war
Economy

US and UK seal first deal of Donald Trump’s trade war

Last updated: May 8, 2025 12:56 pm
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US and UK seal first deal of Donald Trump’s trade war
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The United Kingdom and the United States have reached a significant trade deal, marking the first agreement between the two countries since President Donald Trump initiated a trade war. While the deal includes reductions in punitive tariffs on car and steel exports, a flat 10 per cent levy on most goods remains in place.

The announcement of the pact took place in the Oval Office, with UK Prime Minister Sir Keir Starmer participating via phone. Both leaders expressed their appreciation for the strong relationship between the US and the UK. However, the agreement has its limitations, with many details still needing to be finalized. Despite the deal, Britain will still face a more challenging trading environment with the US compared to before Trump’s tariffs were implemented.

Following the announcement, US stocks experienced a positive uptick, as investors welcomed the potential for future deals to mitigate the impact of tariffs. The S&P 500 saw a rise of over 1 per cent, reaching its highest level since March 27. In an effort to de-escalate the tariff war, US Treasury Secretary Scott Bessent and Chinese officials are set to meet in Switzerland to discuss trade issues.

While the US-UK agreement maintains the 10 per cent tariffs on most British exports, it offers relief by exempting steel and aluminum exports from additional 25 per cent tariffs. Additionally, the first 100,000 British cars sold in the US annually will face a reduced 10 per cent levy. In return, the UK will provide improved market access for US farmers and ranchers without compromising its food standards.

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The deal also includes plans for a digital trade agreement to enhance cooperation and address US concerns regarding the UK’s digital services tax on Big Tech. Despite the positive aspects of the agreement, there are concerns raised by UK National Farmers’ Union President Tom Bradshaw about the burden placed on agricultural sectors.

The US-UK deal could serve as a model for future negotiations with other countries, such as India, Vietnam, Japan, and South Korea. However, questions have been raised about the conformity of the agreement with World Trade Organization rules, particularly regarding the application of tariffs equally to all trading partners.

Overall, the US-UK trade deal represents a step towards strengthening bilateral relations and fostering economic cooperation. As both countries work towards finalizing the details of the agreement, it is clear that further negotiations and collaboration will be necessary to address the complexities of international trade. The Importance of Mental Health in Today’s Society

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One of the primary reasons mental health is so important is its direct impact on physical health. Studies have shown that individuals with poor mental health are more likely to develop chronic illnesses such as heart disease, diabetes, and obesity. This is because mental health issues can weaken the immune system, increase inflammation in the body, and disrupt various bodily functions. By prioritizing mental health, individuals can reduce their risk of developing these serious health conditions and improve their overall quality of life.

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Moreover, mental health plays a significant role in our day-to-day functioning. It affects our ability to cope with stress, manage emotions, and make decisions. Poor mental health can lead to difficulties in relationships, work performance, and overall productivity. By taking care of our mental health, we can enhance our cognitive abilities, boost our resilience, and improve our overall well-being.

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