London market seemingly unhappy about the new US-UK trade deal

On Thursday, the United Kingdom became the first country to seal a trade deal with the US, with the UK’s FTSE 100 closing lower following the announcement of the agreement. Wall Street investors were pumped after the three major US indexes had back-to-back winning sessions. The US already runs a trade surplus with the UK, which means it exports more to the nation than it imports. Trump imposed a 10% tariff on the UK on April 2, but there was no reduction in those levies despite both states reaching an agreement. The White House revealed specifics about the deal, but nothing was signed at the Oval Office during the agreement. UK market appears unhappy with the new US-UK trade deal #ACFMarketWrap . Markets swing on BoE cut & UK-US trade deal twist. BoE trims rate to 4.25% but talks tough. New deal keeps 10% US tariffs on UK goods, delays agri access. FTSE 100 -0.42%. $AAF -9%, $CNA -7% on weak updates. $IMI , $MNDI +4%+, $NXT +1% on sales/guidance beat.... pic.twitter.com/wJdyFmWhcW — ACF Equity Research (@ACFER01) May 8, 2025 US stocks such as the S&P 500 added 0.58%, the Dow Jones Industrial Average rose by 0.62%, and the Nasdaq Composite jumped 1.07%, ignited by a broad rise in tech shares. The pan-European STOXX 600 index climbed 0.4%, while the UK’s FTSE 100 plummeted 0.32%, giving up earlier gains after the UK and US announced a trade deal and as the Bank of England cut interest rates. The Bank of England on May 8 cut interest rates by as expected from 4.5% to 4.25%. Following a slowdown in prices, the BOE cut as expected, with annual inflation cooling to 2.6% in March, down from 2.8% the previous month. BOE’s Governor Andrew Bailey mentioned that the UK was headed for more economic uncertainty despite the country being the first to close a trade deal with the US under President Donald Trump’s heightened tariffs. He argued that the impact of tariffs on the UK economy comes not just from its trade relationship with Washington but also from those of the US and the rest of the world. UK makes a trade deal with the US on tariffs US President Donald Trump announced the broad outline of a trade agreement with the United Kingdom on Thursday. Trump noted that the deal is the first with a country whose imports were subject to new tariffs he imposed in early April. As trade talks were ongoing, Trump’s Truth Social account posted a screenshot showing that U.S. tariffs on the UK will remain at 10%. The President said the figure was low when asked if that baseline tariff is a template for future trade deals. Trump revealed yesterday that the deal includes billions of dollars of increased market access for American exports. He also added that the UK will reduce or eliminate the numerous non-tariff barriers that discriminate against American products. The UK scrapped some concessions, such as a lower tariff rate on its first 100,000 vehicles exported to the US, with UK car manufacturers subject to a 10% rate and any additional vehicles facing 25% rates. The nation also secured new negotiations for Trump’s universal 25% tariffs on steel and aluminum imports. The UK also noted that it requires the US to negotiate an alternative agreement to the Section 232 tariffs on steel and aluminum, including a new trading union for both products. UK Prime Minister Keir Starmer joined Trump remotely and argued that the country has built an incredible platform for the future. The White House acknowledged that the trade deal will create a $5 billion opportunity for new exports for US farmers, ranchers, and producers. It will also include more than $700 million in ethanol exports and $250 million in American beef and other agricultural products. Both countries also committed to working together to enhance industrial and agricultural market access. Trump also said the UK made a good deal and added that some countries will be much higher because they have massive trade surpluses. Trump’s post showed the UK duties on US goods will drop from 5.1% to 1.8%, but it was unclear how those figures were tabulated. Your crypto news deserves attention – KEY Difference Wire puts you on 250+ top sites Source: https://www.cryptopolitan.com/london-market-react-to-us-uk-deal/