BREAKING: U.S. and UK Seal Historic Trade Deal—But Steel Talks Still Grinding On

Washington and London just inked a landmark trade agreement—while somehow still arguing about steel tariffs like it''s 2018.

Free trade wins (mostly). The two economic powerhouses finalized broad terms after years of post-Brexit wrangling. Services, digital, and agriculture get streamlined—but the metals spat proves some protectionist habits die hard.

Steel stalemate continues. Negotiators kicked the can down the road (again) on resolving aluminum and steel disputes. Because nothing says ''special relationship'' like a 25% tariff on British whisky.

Wall Street shrugs. Markets barely twitched at the news—traders too busy chasing crypto pumps and meme stock drama to care about actual fundamentals. Some things never change.

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Under the deal, the U.S. will maintain its 10% baseline tariff on UK imports and charge a 10% duty, down from 27.5% for the first 100,000 imported vehicles per year. In exchange, the U.S. will be able to increase exports of beef, ethanol, and agricultural products to the UK. The UK has also agreed to reduce or remove various non-tariff trade barriers.

U.S.-UK Fail to Reach Steel and Aluminum Agreement

Still, the two sides continue to negotiate the terms for steel and aluminum imports to the U.S. The initial agreement provided for a 0% steel and aluminum tariff, down from 25%. If the discussions go well, the U.S. will “promptly construct a quota at most-favored-nation rates for steel and aluminum articles and certain derivative steel and aluminum articles.” Negotiations for imported UK pharmaceutical products remain on the table as well.

In 2024, the U.S. exported $79.9 billion of goods to the UK and imported $68.1 billion of goods, resulting in a goods trade surplus of $11.9 billion.

The S&P 500 (SPX) has shrugged off the news given that the deal was previously announced while the signing failed to show any new developments. The benchmark index is down by 0.27% today.