The "comprehensive" trade agreement reached by Britain and the United States kicked off a series of trade agreements of the United States

US President Trump and British Prime Minister Stammer announced a "breakthrough" trade deal, which retains the clause of imposing a 10% tariff on British imports, while the UK agreed to reduce its tariff from 5.1% to 1.8% and provide more access for American goods.

US President Trump announced that the United States and the United Kingdom have reached a breakthrough trade agreement, and the final details will be released in the coming weeks. This is the first agreement since Trump returned to the White House in January this year and imposed a series of tariffs on trading partners, triggering a global trade war.

Trump said at a press conference in the Oval Office of the White House on Thursday (May 8) that the trade agreement between the UK and the US would facilitate the establishment of trade zones for aluminium and steel, as well as a secure supply chain for medicines. Both sides will make rapid progress. The UK will lower non-tariff barriers and expand access to the UK market for US beef and ethanol. The UK will also gain new market access to chemicals and mechanical equipment from the United States.

Trump said that the UK would speed up the customs clearance of American goods. The agreement, which includes aircraft, will align the UK with the US in terms of economic security.

Trump said that the United States would adopt a loose policy towards the steel industry.

He said that the United States would obtain 6 billion US dollars in external revenue (with a 10% tariff) from the trade agreement with the United Kingdom, as well as 5 billion US dollars in new export opportunities.

Reuters quoted Trump as saying, "This opens up a huge market for us."

Stammer said in the conference call, "This is truly a wonderful and historic day."

Trump's chaotic policy-making not only disrupted global trade with Allies but also potentially triggered inflation and an economic recession. Since then, the United States has been under pressure from investors to reach an agreement to ease the tariff war.

Since Trump imposed a 10% tariff on most countries on April 2nd, raised tax rates on many trading partners, and later suspended the implementation for 90 days, senior US officials have held a series of talks with trading partners.

The United States has also imposed a 25% tariff on automobiles, steel and aluminium, a 25% tariff on Canada and Mexico, and a 145% tariff on China. Chinese and American officials will hold talks in Switzerland on Saturday. Trump expected that the talks would take place in a friendly atmosphere.

More agreements will be reached in the future

Previously, Trump posted on his social media platform "Truth Diplomacy" that he had reached a comprehensive agreement with the UK and promised that more agreements would follow in the future.

Bloomberg pointed out that the details of the agreement are expected to indicate the direction of the US President's global trade war.

He wrote: "The agreement reached with the UK is a comprehensive and complete one, which will lay a long-term foundation for consolidating the relationship between the United States and the UK." Given our long historical ties and common commitments, it is a great honor to have the UK as the first party to announce the agreement. At present, several other agreements are at an important stage of negotiation and will be announced one after another!

Optimism that the agreement would be beneficial to the British economy boosted the stock market and the exchange rate of the pound.