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Investing.com -- President Donald Trump confirmed a trade deal with the United Kingdom (TADAWUL:4280) on Thursday. It is the first deal since reciprocal tariffs were announced on April 2nd. Importantly, the 10% base tariff will remain for the UK, providing a glimpse of a possible roadmap for future deals.
Trump highlighted that the new deal will raise $6 billion in External Revenue from the agreement and $5 billion in new export opportunities.
The two sides also announced the creation of an Aluminum and Steel trading zone and a secure pharmaceutical supply chain.
“Today is an incredible day for America as we deliver our first Fair, Open, and Reciprocal Trade Deal — Something our past Presidents never cared about,” Trump stated. “Together with our strong Ally, the United Kingdom, we have reached the first, historic Trade Deal since Liberation Day.”
As part of the deal, the UK has agreed to a $10 billion Boeing procurement deal. Shares of Boeing Co (NYSE:BA) rose 3% intraday.
The deal will provide a 10% tariff on a quota of 100,000 UK auto exports to the U.S.
U.S. Secretary of Agriculture Brooke Rollins said the deal will “exponentially increase” U.S. beef exports to the UK.
Commenting on a potential deal with China ahead of this weekend’s meeting, Trump he could consider lowering the tariff rate for the trade advisory.
“Well, it could be. We’re going to see. Right now, you can’t get any higher... I think we’re going to have a very good relationship."
Trump added that the 10% baseline is not a template for future trade deals, but is a “low number”. He said others will be higher. He added that 10% is probably the lowest end.