Trump's SHOCKING Trade Deal: Rolls Royce Tariffs CUT, Markets REACT!

2025-05-09 06:01:02.921

President Donald Trump announced a trade agreement with the United Kingdom, calling it the first of many. While details were sparse, a White House fact sheet revealed that a 10% tariff on UK imports will remain, but car tariffs will be reduced. The announcement had a muted effect on US markets, which rallied briefly before enthusiasm faded. The Dow closed up 254 points, the S&P 500 gained 0.58%, and the Nasdaq rose 1.07%. Despite the limited details, investors reacted positively, with Bitcoin surpassing $101,000. The agreement includes a carve-out for ultra-luxury cars, lowering tariffs on brands like Rolls-Royce, Bentley, and Jaguar, to 10% for the first 100,000 vehicles imported annually, while additional vehicles face a 25% tariff. This preferential treatment for luxury cars drew criticism. Trump's top trade advisor, Peter Navarro, stated that more trade deals are forthcoming, urging patience. The US Trade Representative, Jamieson Greer, indicated positive trade talks with Vietnam and other South Asian countries, but cautioned that deals aren't guaranteed. The UK deal is seen by some as a template for future negotiations. While the deal was hailed as a win for Trump, analysts pointed out its limited scope and the persistence of the 10% baseline tariff. The British Prime Minister, Keir Starmer, emphasized that the deal is an improvement over the previous day's situation. The agreement also includes provisions for beef and ethanol exports. Trump expressed optimism about upcoming trade talks with China, suggesting potential tariff reductions if the talks are successful. He urged investors to buy stocks, predicting strong economic growth. Markets showed a "greed" sentiment according to CNN's Fear and Greed index. Despite the positive market reaction, some analysts expressed concerns about the lack of detail and the limited benefits of the deal, particularly for the UK. The 10% tariff remains a significant barrier, and the deal primarily benefits luxury car imports, not everyday consumers. The US-UK agreement includes tariff reductions for luxury cars, steel, and aluminum, while maintaining a 10% tariff on most other goods. The deal also provides for increased access to the UK market for US beef and ethanol. The overall agreement is seen as a framework for future negotiations, with many details yet to be determined. President Trump continued his criticism of Federal Reserve Chair Jerome Powell for not lowering interest rates faster. The White House fact sheet highlighted a potential $5 billion opportunity for new US exports to the UK, although the specifics remain unclear. Trump emphasized that the 10% tariff is not a template for future deals, suggesting that other countries might face higher tariffs. Despite the minimum 145% tariff on most Chinese goods, Trump indicated a willingness to meet with Chinese President Xi Jinping, expressing optimism about the upcoming trade talks. He stated that more trade deals are in the works.