Trump unveils pivotal trade pact with UK boosting markets
American stock index futures rose significantly after President Donald Trump announced a key trade agreement with a "big and highly respected country," which, according to numerous media reports, is the United Kingdom. The President announced a press conference at the White House where he will present details of the agreement.
Donald Trump announced on his profile on Truth Social that a "Big News Conference" will be held on Thursday at 3:00 PM GT in the Oval Office. The President emphasised that the announcement will concern a "major trade deal with representatives of a big, and highly respected, country." According to information provided by Trump, this agreement is to be "the first of many."
The New York Times reports, citing sources familiar with the matter, that the announced agreement will be made with the United Kingdom. Meanwhile, the Financial Times reports that the scope of the agreement will be limited and will mainly focus on tariffs on British cars and steel, which were imposed by Trump with a 25% duty.
Market reactions and the British Prime Minister's position
American futures rose noticeably on Thursday morning. Dow Jones futures gained over 300 points (0.77%), while S&P 500 futures rose over 1% to 5,710 points. Nasdaq technology index futures saw an even larger increase - 1.38% to 20,236 points. On the London Stock Exchange, the FTSE 100 index rose by 0.3% in morning trading.
British Prime Minister Keir Starmer also hinted at the sealing of an agreement during his Thursday address. In a speech commemorating the 80th anniversary of the end of the Second World War, Starmer spoke about deepening his country's ties with allies, including the United States. The Prime Minister referred to the United States as an essential ally for both economic and national security. He also mentioned that talks with the U.S. are ongoing and indicated that further details would be shared later in the day.
Details of the agreement are expected to be presented during the announced press conference, which could be significant for future trade relations between the USA and the United Kingdom post-Brexit. Analysts point out that this is the first of the trade arrangements announced by the Trump administration aimed at restructuring the global economic relations of the USA.
