Key details are yet to be finalized. The market's response to the US-UK trade agreement has been lukewarm.

On May 8, President Trump announced at the White House that the United States had reached a new trade agreement with the United Kingdom. As part of the agreement, certain tariffs in specific areas would be partially withdrawn to further expand market access for products from both sides. However, many details of the agreement still needed to be finalized, and the 10% so-called "equal tariffs" imposed by the US earlier had not been canceled. Trump stated that the final details of the agreement would be ironed out in the coming weeks. According to documents released by the White House, the first 100,000 cars exported from the UK to the US each year would be subject to an additional 10% tariff, with any excess taxed at a rate of 25%. The UK would reduce or eliminate non-tariff barriers and expand market access for American products such as beef, ethanol, grains, and some industrial products. The UK government released a statement on its official website, stating that the UK and the US would mutually reduce tariffs. Tariffs on steel and aluminum products exported from the UK to the US would be eliminated. The tariff on cars imported to the US from the UK would be reduced from the current 27.5% to 10%. Additionally, within certain quotas, the UK's Shenzhen Agricultural Power Group would export to the US with zero tariffs. The UK would also reduce the tariff on ethanol imported from the US to zero. Furthermore, the White House emphasized that the 10% "equal tariffs" imposed on trade partners by the US would continue to be in effect. Trump told the media that the 10% tariff on the UK was not a template for other countries and could be the lowest, with other countries possibly having higher tariff rates. Trump promoted the trade framework reached with the UK as a historic achievement, but it fell short of the "comprehensive and complete" agreement he had promised, or the US-UK free trade agreement he had pursued in his first term. Some analysts believed that this was more of a "deal" hastily signed by Trump to meet market demands. Tim Meyer, a professor of international trade law at Duke University Law School, said, "For the overall market and those concerned about the US economy, this is not a big deal at all. There's nothing to see here. Clearly, this is just a framework, not a real agreement." Meyer predicted that future agreements might also be limited, saying, "We'll see more of these framework announcements." The market's tepid reaction to the new trade agreement could be seen in the performance of the US stock market. On Thursday, the US stock market saw only a modest increase - the S&P 500 index rose by just 0.58%, and most of the gains made after Trump announced the new trade agreement with the UK were reversed, indicating that the market did not fully support it. UK Prime Minister Stamer admitted that both sides still needed to "finalize the details," but described the consensus as "great." Trump, on the other hand, dismissed concerns about exaggerating the importance of the agreement and emphasized that it was "a great deal for both sides." Facing declining poll numbers, Trump has been eager to announce his victories, as his tariff agenda has disrupted global market stability and heightened concerns about economic recession. While Trump argued that these efforts were worth enduring short-term pain as they would increase investment in the US, he clearly wanted to show progress to alleviate economic anxiety. It is noteworthy that the agreement overlooked some of the concerns that US businesses have about the US-UK trade relationship. The UK would maintain the digital services tax imposed on major American tech companies, only committing to seeking a future digital trade agreement. Christine Bliss, President of the US Services Industry Alliance, said in a statement, "The UK's digital services tax should be further discussed and resolved to ensure that it is implemented in a fair manner for US service providers." Additionally, the US and UK had not yet decided how to handle Trump's plan to impose comprehensive drug tariffs. While the UK had eliminated tariffs on some products from the US Shenzhen Agricultural Power Group, strict monitoring of food standards still existed. Matthew Ryan, Head of Market Strategy at Ebury, said, "So far, we have seen little optimism in the UK financial markets about this agreement, which is enough to show investors' views on it." "This is far from a comprehensive trade agreement, and it may take months or even years to finalize it, with more detailed negotiations still needed." In a statement, the White House said that the agreement "set a tone for other trade partners to promote reciprocal trade with the US." The concessions in the agreement regarding automobiles - applying a lower 10% tariff to the first 100,000 cars exported from the UK to the US each year, and the commitment to reduce steel and aluminum tariffs - showed other countries that Trump's industry tariffs could also be negotiable. Brad Setser, a senior researcher at the American Foreign Relations Association, said that this "set an important precedent for future negotiations with more significant partners such as Europe, Japan, and South Korea."