UK-US trade deal announced: Trump White House calls on "buy stocks now"

Source: Techub Info

Today, we focus on a hot news that has swept the world - the United States and the United Kingdom have reached a highly anticipated trade agreement framework. This not only marks a new level in the economic and trade relations between the two countries, but also ignites the investment enthusiasm of the market.

US President Trump said in a high-profile manner in the White House: "Everyone's better off buying stocks now!" He pointed out that the bills of Congress and the trade agreement will push the US economy "to a critical node" and now is an urgent time to invest. Boosted by this, the S&P 500 Index (SPY) expanded its gains, rising 1.4% at one point, closing at $565.06, up about 0.7% from the previous day's closing price of $561.15. However, Trump also took the opportunity to criticize Fed Chairman Powell, calling him "Big Late Powell" and complaining that "the world is cutting interest rates, only he is dragging his feet."

In addition, his tough stance against Mattel attracted attention, warning that if Mattel moved production, it would face a 100% tariff, causing Mattel's stock price to plummet 5.3%. Trump also revealed that the United States is purchasing a new air traffic control system to pave the way for infrastructure upgrades. Below, we will give you an in-depth interpretation of the ins and outs of the UK-US agreement and its market impact

The UK and the United States reached a trade framework, and Trump announced it in a high-profile manner

On the evening of May 8, Beijing time, US President Trump announced the preliminary framework of the trade agreement with the UK in the Oval Office of the White House.

He said the agreement would significantly expand market access for American products, especially in the agricultural sector, with broader export space for American beef, ethanol and "almost all the products produced by our great farmers." Trump stressed that the UK would reduce or eliminate a number of non-tariff barriers and simplify customs clearance procedures for American products to ensure that export approvals were "very, very fast and without red tape."

In addition, the agreement also opens up new markets for American chemicals, machinery and other industrial products. Trump said the UK would be included in a framework consistent with the US economic security system and that the details of the agreement would be finalized in the coming weeks. He also posted on the Truth Social platform: "This is a comprehensive and complete agreement that will consolidate the US-UK relationship and lay the foundation for many years to come. It is a great honor to be the first to announce it to the UK! More agreements are being negotiated, so stay tuned!" British Prime Minister Starmer participated in the event via remote connection. He said: "We have built an exciting platform for future cooperation." Starmer said that this agreement is a "real tribute" to the long history of cooperation between the UK and the United States.

Agreement Background: From Tariff Disputes to Win-Win Cooperation

In April this year, Trump announced a 10% "reciprocal tariff" on almost all countries in the world, of which the UK also faced a 10% base tariff and 25% steel and automobile tariffs. After this policy caused market turmoil and criticism, Trump quickly adjusted his strategy and launched a 90-day "tariff suspension period" to impose a unified 10% tariff on affected countries. The UK-US agreement is seen as the first major achievement after this policy shift.

Trump said that the agreement will bring Britain into the "security umbrella" of the United States, bringing significant economic benefits to both countries. US Commerce Secretary Lutnick further revealed that the agreement will open up new markets for US ethanol, beef and other products, and is expected to bring billions of dollars in benefits to exporters, while supporting the steel and aluminum industries of both countries to save thousands of jobs. He also mentioned that a British airline will purchase Boeing aircraft worth $10 billion, and the United States has agreed to exempt Rolls-Royce jet engines and parts from tariffs.

Market response: US stocks rose sharply

After the announcement of the agreement, the market responded quickly. The three major U.S. stock indexes fluctuated slightly higher as Trump elaborated on the details of the agreement. Later, when reporters asked about Sino-U.S. trade relations, Trump expressed optimism and called on investors to "buy stocks now," saying that if the trade agreement and tax cuts are implemented smoothly, the stock market will see a bigger rise. This statement directly ignited market enthusiasm, and the three major indexes rose straight to the high point of the day. Boeing's stock price rose sharply due to the good news of aviation orders, reflecting investors' strong confidence in the agreement.

In the commodity market, gold prices generally dived, while crude oil prices rebounded from a low level, approaching US$60 per barrel.

Future Outlook: Opportunities and Challenges Coexist

Although this is only a framework agreement and the details are still to be finalized, its importance cannot be ignored. Lutnick said the agreement created $5 billion in business opportunities for U.S. exporters in ethanol, beef, machinery and agricultural products. For the UK, the agreement is expected to ease the tariff pressure it faces and provide a respite for the steel and automobile industries. However, British officials warned that this is not a complete free trade agreement and negotiations in some areas may face complex challenges.

Global attention is focused on this agreement because it provides clues to the Trump administration's strategy in trade negotiations - whether the baseline tariffs will continue and whether other countries can reach similar agreements. In the coming weeks, the disclosure of details of the agreement will further reveal its far-reaching impact.

The conclusion of the framework of the UK-US trade agreement is an important cooperation between the two countries in the global trade uncertainty. As Trump said, this agreement is "good for both countries", which not only injects vitality into the economies of both sides, but also brings positive signals to the global market. We will continue to pay attention to the development of this event and bring you the latest developments!

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