After implementing global tariffs in April, President Trump has revealed the first successfully negotiated trade deal with a foreign nation: The United Kingdom. Coinciding with the 80th anniversary of VE Day, which marks the end of World War II for Europeans, the announcement marks a significant step forward in the United States achieving trade parity with other countries.
While the deal maintains the original 10% tariff implemented against the UK, suggesting a universal floor, it allows slightly loser regulation on car imports into the United States and allows UK steel to enter duty-free. It also establishes a market in the UK for American beef and lowers the import taxes on roughly 2,500 US-made products. Similarly, non-tariff barriers for US trade will be either "reduce[d] or eliminate[d]" entirely.
To be fair there are still many more trade deals to be negotiated stemming from Trump's Tariffs, arguably of more importance. Although a critical ally and friend of the United States, the United Kingdom is our nation's eighth-largest trading partner. Canada, Mexico, and China rank as the top three sequentially and no deals have yet been struck with their governments, although negotiations are allegedly underway with all three.
The United States began talks with China on the heels of negotiations with the United Kingdom, buoyed by its early success. Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent met on neutral ground in Switzerland to attempt a path forward. President Trump posted on social media that he would consider lowering the current tariffs levied against Chinese imports from a staggering 145% to 80% in exchange for a significant opening of their domestic market to US manufactured goods.
The meeting comes the same week as the US announced an end to “de minimis” tariffs, which had exempted imports costing under $800 from taxation. Almost 4 million such packages arrive stateside each day, with a large majority coming from China. Now, these goods will be subject to the same taxation as larger imports, securing significant collections for the United States.
Following the implementation of tariffs this spring, an action President Trump has referred to as "Liberation Day," the White House reported that fifty nations had reached out in pursuit of economic negotiation. Most of the larger players on the world stage seem eager to resume normalized trade with the United States- even if it means giving concessions in their economic policies to do so. Trump is also using the opportunities granted by audiences with world leaders to broach other sensitive subjects and settle as much as he possibly can. He posted on social media, "'ONE STOP SHOPPING' is a beautiful and efficient process!!!"
The President went on to hint that the best was yet to come, posting, "Many Trade Deals in the hopper, all good (GREAT!) ones!" Following the announcement of the trade deal with the United Kingdom, the stock market rose almost immediately, with the DOW gaining 400 points.
How do you feel about Trump's ability to leverage Tariffs into renegotiated trade deals? Does it bode well for agreements with other nations?
Hilary Gunn is a Connecticut native with a degree in Criminal Justice from the George Washington University. She works for a nonprofit and has previously collaborated with the CT GOP as an activist, political campaign manager and field director, and social media organizer. She is currently serving in her fourth term of municipal office and has previously acted as a delegate on the Republican Town Committee.