U.S. and U.K. Finalize Limited Trade Agreement; U.S.-China Talks Loom
Introduction
The United States and United Kingdom have announced a new, limited trade agreement-the first such deal since President Trump’s administration suspended initial tariffs last month. This arrangement, while offering targeted relief to select industries and providing a framework for future negotiations, stops short of a comprehensive free trade agreement. The deal has buoyed financial markets and raised hopes for further progress on global trade, but its narrow scope and the continued presence of significant tariffs have sparked debate over its true impact. Meanwhile, attention is turning to upcoming U.S.-China trade talks in Switzerland, which could determine the trajectory of the global economy in the coming months.
Details of the U.S.-U.K. Trade Agreement
Key Provisions
The new U.S.-U.K. trade agreement, described by both governments as an “Economic Prosperity Deal,” primarily rolls back a portion of the tariffs imposed by the Trump administration in March and April 2025. Its main features include:
