US Strikes First Trade Deal, and Markets Are Happy

The US and the UK have struck a deal on trade after President Trump's imposition of tariffs, the first of what could be dozens to follow, reports the Washington Post. Details are scant at the moment, but President Trump plans to address it at a 10am Eastern news conference. Even if this ends up being just the broad outline of an agreement, markets are happy with the precedent: Dow futures rose about 400 points early Thursday on the news, reports CNBC.

• "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," Trump wrote on Truth Social. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!"
• However, the Wall Street Journal doubts any deal struck in such a short time can be "comprehensive" and instead expects a narrowly focused pact. Trade attorney Timothy C. Brightbill tells the New York Times it's probably "just an agreement to start the negotiations, identifying a framework of issues to be discussed in the coming months."
• The US imposed a 10% tariff on most goods imported from the UK, and the UK also is subject to Trump's 25% tariff on imported steel and aluminum. The UK has retaliated in turn, and the BBC predicts the deal might result in lower tariffs on US cars imported there. The UK might get a break on the steel and aluminum tariffs, but the baseline 10% tariff is likely to remain, per the Journal.

(More tariffs stories.)