Particle.news
Download on the App Store
15 ARTICLES
·
yesterday

US-UK Tariff Deal Finalized as Markets Rally Ahead of US-China Talks

The agreement maintains a 10% baseline tariff while lowering duties on UK cars and expanding US agricultural access, with attention now shifting to high-stakes US-China negotiations in Switzerland.

U.S. dollar banknotes are seen in this photo illustration taken February 12, 2018. REUTERS/Jose Luis Gonzalez/Illustration/File Photo
Trader Drew Cohen works on the floor of the New York Stock Exchange, Thursday, May 8, 2025. (AP Photo/Richard Drew)
Trader Patrick Casey, center, works on the floor of the New York Stock Exchange, Thursday, May 8, 2025. (AP Photo/Richard Drew)
Trader Michael Capolino works on the floor of the New York Stock Exchange, Thursday, May 8, 2025. (AP Photo/Richard Drew)

Overview

  • The US and UK finalized a 'maxed-out' tariff framework, keeping a 10% baseline tariff on UK goods while easing auto duties and opening UK markets to US beef and ethanol exports.
  • President Trump announced upcoming 'substantive' US-China trade talks in Switzerland, with the possibility of reducing the current 145% tariffs on Chinese imports.
  • Global markets rallied on trade optimism, with major US indices rising over 1%, Bitcoin surpassing $100,000, and oil prices climbing nearly 3%.
  • The Federal Reserve's signals have tempered expectations for imminent rate cuts, boosting the US dollar and lifting Treasury yields.
  • Analysts cautioned that the US-UK agreement is a preliminary framework, with key details yet to be negotiated and full trade treaties likely years away.