Trump Tariffs Pay Off as He Announces First Major Trade Deal with Key Ally [WATCH]

President Donald Trump announced Thursday that the United States has finalized a new comprehensive trade agreement with the United Kingdom.

The deal marks the first in a series of trade initiatives expected to be rolled out under the Trump administration’s current economic strategy.

“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,” Trump stated on TRUTH Social early Thursday.

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“Because of our long time history and allegiance together, 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 added, “This should be a very big and exciting day for the United States of America and the United Kingdom. The Golden Age of America is coming!”

BREAKING: President Trump announces a historic first new trade deal with the United Kingdom on the 80th anniversary of VE Day, victory in Europe in WW2:

“It’s just incredible that day is the same day we signed a tremendous trade deal for both countries.” pic.twitter.com/UGPi2IAaiE

— Charlie Kirk (@charliekirk11) May 8, 2025

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The announcement followed a preview issued by Trump on Wednesday, when he indicated that a “major trade deal” would be unveiled during a morning press conference from the Oval Office.

However, he did not identify the country involved at the time. “Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!” he posted.

According to The New York Times, which cited three sources familiar with the discussions, the U.K. was expected to be the featured nation in the announcement.

The deal comes amid recent tariff changes enacted by the Trump administration.

As of April 5, the United States implemented a 10% reciprocal tariff on goods imported from the U.K. This followed a broader 25% global tariff on imported vehicles, effective April 3, and a 25% tariff on steel, aluminum, and related products that began on March 12.

These measures applied even to traditional allies, including the U.K.

Before the implementation of the new tariff structure, most U.K. goods exported to the U.S. were subject to low tariff rates, generally ranging from 0 to 2.5%, with exceptions for items like steel, aluminum, and some vehicles.

The U.K., in turn, imposed duties on U.S. goods based on World Trade Organization “Most Favored Nation” rules, with an average applied tariff rate of 3.8% as of 2023.

Tariffs reached as high as 25% for certain fish and seafood exports from the U.S., and 10% for passenger vehicles and trucks.

In 2024, the U.S. goods trade surplus with the U.K. reached $11.9 billion, a 17.4% increase over the prior year.

This trade pact is the second signed by the United Kingdom within a single week, following the announcement of a separate agreement with India.

A U.K. official stated earlier this week that negotiations with the United States had made solid progress and that the agreement was likely to address tariff reductions on automobiles and steel.

The timing of the announcement coincides with an upcoming meeting between U.S. and Chinese trade officials scheduled for Saturday in Switzerland.

The discussions are seen as an initial step toward de-escalating ongoing trade tensions between the world’s two largest economies.

Global trade instability and U.S. tariff policies have had broader economic impacts.

Last month, the International Monetary Fund lowered growth projections for the U.S., China, and other economies, citing U.S. tariffs and heightened trade uncertainty as key factors contributing to a global slowdown.

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