- Trump announced a US-UK trade deal boosting American beef and ethanol exports while maintaining a 10% tariff on UK goods.
- EU trade talks hit a rough patch as the bloc released a list of US goods it plans to target with tariffs if negotiations fail.
- Ahead of US-China trade talks, Trump hinted at easing 145% tariffs if discussions with President Xi go well.
President Trump unveiled a new trade deal with the UK on Thursday, marking the first major agreement since imposing and then pausing broad “reciprocal” tariffs in April. Calling it a “great deal for both countries,” Trump said the agreement would significantly boost US exports, particularly for American beef and ethanol producers. “Billions of dollars of increased market access,” he claimed, standing in the Oval Office.
UK Prime Minister Keir Starmer, who joined by phone, hailed the deal as a “fantastic, historic day.” Despite the positive spin, the UK will still face a universal 10% tariff on exports to the US, while the US plans to slash 25% auto tariffs to 10% and eliminate steel tariffs altogether, according to Commerce Secretary Howard Lutnick. More details are expected in the coming weeks.
EU Talks Sour, China Talks Loom
While Trump was all smiles with the UK, the mood with the EU was far frostier. On Thursday, the EU released a list of US goods it plans to hit with tariffs if trade talks falter. Meanwhile, Trump’s stance on China was a bit more optimistic. Ahead of weekend talks between US Treasury Secretary Scott Bessent and Chinese officials, Trump suggested he might meet with President Xi and hinted that he could ease the 145% tariffs if things go well.
China, for its part, reportedly compiled a list of US goods exempt from its 125% tariffs, signaling a willingness to negotiate without making public concessions. Trump, however, was unyielding, saying China “deserves it” and would likely “absorb the costs.”
Powell Weighs In, Economy Braces for Tariff Impact
Federal Reserve Chair Jerome Powell, speaking on Wednesday, said the central bank was holding rates steady for now, noting that while sentiment is shaky, the full impact of the tariffs hasn’t been felt yet. Trump, meanwhile, shrugged off concerns, placing the burden on other countries to reach deals. “We don’t have to sign deals,” he said. “They have to sign deals with us.”
