by In a groundbreaking announcement on Thursday, U.S. Commerce Secretary Howard Lutnick revealed that the newly formed trade agreement between the United States and the United Kingdom is just the beginning, with even more deals expected in the coming weeks. Lutnick emphasized the strategic importance of these trade agreements, signaling a shift in global economic dynamics.
A Win for American Businesses
During an interview on FOX Business’ “Kudlow,” Lutnick praised the trade deal, highlighting that it would significantly benefit American industries, especially agriculture. “This is Donald Trump at his best, creating opportunities for someone like me to go out and make the best deals for America,” Lutnick said, referring to the former president’s leadership in shaping the deal. He added, “We’ve got the cards, and we’re going to play them incredibly well.”
Details of the US-UK Trade Agreement
The preliminary deal promises to boost the U.S. agricultural sector and includes provisions such as maintaining President Donald Trump’s 10% tariffs on British exports. In return, U.S. tariffs on British car exports will be reduced, and there will be expanded access for agriculture from both countries. The deal is expected to unlock $5 billion in new export opportunities for American businesses and generate $6 billion in tariff revenue, according to Lutnick.
The agreement also allows British-made Rolls-Royce engines—used in Boeing jets—to enter the U.S. without tariffs. In return, the UK is expected to purchase $10 billion worth of Boeing aircraft. British Airways has already placed an order for 32 Boeing 787-10 Dreamliner planes, further cementing the deal’s economic impact.
Economic Impact and Future Expectations
Since Trump took office, U.S. tariff revenue has surged by 45% year-over-year, with an estimated run rate of $125 billion. Lutnick suggested that the “winning move” for the U.S. economy is cutting the trade deficit, which he believes could increase GDP by one percentage point if reduced by 25%.
“This kind of deal will change the way America operates, and it will drive our economy forward,” Lutnick said. He also noted that the deal is expected to decrease reliance on supply chains from China, paving the way for future agreements.
More Deals on the Horizon
Looking forward, Lutnick hinted that more trade deals are already in the works, particularly with large nations. “We want to focus on big countries, especially from Asia, and show the world how these deals can be structured,” he explained. While the U.S. intends to take a strategic approach and avoid rushing into agreements, Lutnick expressed confidence that the future of American trade looks brighter than ever.
