US president Donald Trump on Thursday confirmed a trade framework with the United Kingdom that reduces tariffs on autos and metals while keeping the baseline 10% tariff as it is. The announcement followed a phone call with UK prime minister Keir Starmer. Under the plan, US tariffs on British cars will drop from 27.5% to 10% for a quota of 100,000 vehicles. Tariffs on steel and aluminium will be removed. In return, the UK will increase purchases of US agricultural goods, simplify customs for American products, and cut import taxes on around 2,500 items, including olive oil, wine, and sports equipment.The Republican president indicated that other countries negotiating trade deals with the US could face steeper import taxes. Referring to the UK’s 10% tariff rate, Trump said, “That’s a low number,” and argued that nations with which the US runs trade deficits—and which he claimed had treated the US unfairly—would be subject to higher tariffs.US stocks meanwhile surged Thursday as investor optimism grew following the announcement of the trade deal between the United States and the United Kingdom that could ease recession fears by lowering select tariffs and restrictions.Earlier, during simultaneous press conferences in London and Washington, Keir Starmer appeared via video link from the White House alongside Donald Trump, calling the US-UK trade agreement “a truly fantastic and historic day.”
