Donald Trump has declared the next step in the “Golden Age of America” after confirming a “full and comprehensive” trade deal with the United Kingdom — the first agreement since his global tariff blitz reignited tensions across international markets.
In a post on his Truth Social platform, the US President said the deal “will cement the relationship between the United States and the United Kingdom for many years to come.”
“Because of our long-time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement,” he wrote. “Many other deals, which are in serious stages of negotiation, to follow!”
The announcement comes just one day after Trump met with Canada’s newly elected Prime Minister, Mark Carney, and only weeks after his sweeping imposition of tariffs on allies and rivals alike. In April, the US slapped 10% tariffs on most countries, raised rates on key goods like autos, steel and aluminium, and targeted China with 145% levies. Auto and steel industries were hit particularly hard, with British car manufacturers forced to halt or limit US shipments.
Narrower deal than advertised?
While Trump has billed the UK deal as broad and transformative, analysts and officials have suggested it may be more modest in scope. According to reports from Reuters and The Times, the agreement — set to be formally unveiled during a 10:00AM press conference in the Oval Office (3:00PM UK time) — is expected to focus primarily on lowering tariffs on British steel and cars, not the sort of wide-ranging economic partnership seen in recent deals such as the UK-India agreement.
Still, Britain will welcome being first in line to cut a deal with Washington. Prime Minister Keir Starmer, who has struck up a “warm relationship” with Trump since taking office last July, hinted at the announcement earlier in the day during a defence speech marking 80 years since the end of World War II.
“As you know, talks with the US have been ongoing, and you will hear more from me about that later today,” Starmer said, per BBC News. He described the United States as “indispensable” to both Britain’s economy and national security, adding that his government would act “in the national interest, for workers, businesses and families — to deliver security and renewal for our country.”
UK takes diplomatic path to secure deal
Unlike Canada and the EU, which responded to Trump’s tariff assault with threats of retaliatory levies, the UK opted for quiet diplomacy. Negotiators focused on resolving disputes through discussion rather than confrontation, a strategy that appears to have paid off.
The deal is the first to emerge from what Trump called his “liberation day” announcement — a sweeping trade realignment meant to reposition the US on stronger economic footing. Following those announcements, several nations scrambled to begin negotiations, hoping to avoid long-term penalties or exclusions.
“The United States has been under pressure from investors to strike deals to de-escalate its tariff war,” reported Reuters. Trump’s unorthodox approach had left markets rattled, with fears of inflation and potential recession looming amid supply chain disruptions.
Industry impact and investor reaction
The auto and steel sectors in Britain, both badly affected by U.S. tariffs, stand to benefit directly from the agreement.
Jaguar Land Rover had temporarily paused U.S. shipments while it reviewed how to manage the 25% levy. Meanwhile, Aston Martin announced it would split the cost of tariffs with customers and cut back U.S. exports — a move that pushed its shares up 8% on Thursday following news of the breakthrough.
Although full details of the agreement have yet to be disclosed, investors and industry leaders are watching closely. Final terms are expected to clarify how and when tariffs will be rolled back, as well as whether broader regulatory cooperation is on the table.
What happens next?
The White House has stated that “many other deals” are now in “serious stages of negotiation,” with talks between U.S. and Chinese officials scheduled for Saturday in Switzerland. Meanwhile, observers will be parsing every word of today’s joint announcements from Trump and Starmer for signs of future alignment—or divergence—on global trade.
