The stock market and futures gathered momentum in light of the latest trade deal between the U.S. and the UK. The futures tied to the Dow Jones Industrial Average were reportedly higher by 61 points, or 0.2%. Nasdaq-100 futures climbed 0.4%, while S&P 500 futures were up about 0.3%.
“While trade with the UK pales in comparison to trade with our neighbors to the North and South, and especially in comparison to China, it is an important test case and a model for what could be accomplished,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
He added that if the administration could follow this up with additional agreements, it would go a long way toward healing a stock market that has been battered and bruised this year.
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President Donald Trump on Thursday announced the outline of a trade agreement with the United Kingdom. The deal is the first by the United States with a country whose imports were subject to new tariffs imposed by Trump in early April.
The 2025 UK-U.S. trade deal sets the stage for deeper economic and strategic cooperation between the two countries. For the UK, it offers a post-Brexit boost by improving access to the world’s largest economy, encouraging investment, innovation, and job creation. For the U.S., it strengthens ties with a key ally while expanding markets for American products and technologies. The deal also promotes joint development in critical areas like AI, green energy, and advanced manufacturing. Going forward, this partnership could lead to greater global influence, more resilient supply chains, and a stronger shared position in addressing global challenges like climate change and security.
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“The final details are being written up,” Trump said. “In the coming weeks we’ll have it all very conclusive.”
According to the White House, the deal will incorporate these key features among others:
- Keep in place a 10% blanket U.S. tariff on UK imports.
- Adjust tariffs on UK autos so that the first 100,000 vehicles imported from UK car manufacturers each year are subject to a 10% rate, and any additional vehicles face 25% rates.
- Commit both countries to working together to enhance industrial and agricultural market access.
- Close loopholes and increase U.S. firms’ competitiveness in the UK’s procurement market.
- Streamline customs procedures for U.S. exports.
- Establish commitments on intellectual property, labor and the environment.
- Secure the supply chain of U.S. aerospace manufacturers through preferential access to high-quality UK aerospace components.
- Create a secure supply chain for pharmaceutical products.