U.S. Stock Futures Up Ahead Of Trump Unveiling Reported U.K. Trade Deal

Topline

U.S. stock futures were up sharply early on Thursday, after President Donald Trump teased the announcement of a key trade pact with a “big, and highly respected, country,” which multiple reports say will be the U.K.

Key Facts

The president teased the announcement in a Truth Social post on Wednesday night, saying he will hold a “Big News Conference” at 10:00 a.m. ET on Thursday at the Oval Office.

According to the president, the announcement will be about a “MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY.”

Trump also claimed this trade pact will be the “FIRST OF MANY”.

Citing people familiar with the announcement, the New York Times reported the announcement will be a trade deal with Britain.

According to the Financial Times, the scope of the deal will be limited and primarily focus on tariffs on British-made cars and steel—both of which have been hit with a 25% tariff by Trump.

How Have Markets Reacted?

U.S. stock futures were up early on Thursday morning, with Dow Futures rising more than 300 points or 0.77%, while S&P 500 Futures rose more than 1% to 5,709.75 points. Tech-focused Nasdaq Futures also rose to 1.38% to 20,235.75 in early trading. In the U.K., the London Stock Exchange’s benchmark FTSE 100 index was up by 0.3% in morning trading.

What Have U.k. Officials Said?

British Prime Minister Keir Starmer also teased the deal during an address on Thursday morning. Speaking at an event commemorating 80 years since the end of the Second World War, Starmer talked about his country deepening its ties with allies, including the U.S. Starmer said America was an “indispensable ally for our economic and national security.” The prime minister then added: “As you know, talks with the U.S. have been ongoing, and you will hear more from me about that later today.”

What U.s. Tariffs Does The U.k. Currently Face?

When President Donald Trump announced his so-called “reciprocal tariffs” on hundreds of countries in early April, British goods were hit with a 10% levy. Britain was among a small number of countries to be hit with the lowest tariff band of 10%—which was half of the 20% levy faced by the European Union. However, British-made steel and cars are subject to a 25% tariff rate as these industry-specific tariffs were separate from the reciprocal levies. Unlike the EU, which began drawing up retaliatory tariffs on U.S. goods, and China, which engaged in a tit-for-tat escalatory tariff battle with the U.S., British officials held off on retaliatory measures. After the steel tariff announcement in March, UK Business Secretary Jonathan Reynolds said they were “focused on a pragmatic approach” and are “rapidly negotiating a wider economic agreement with the U.S. to eliminate additional tariffs.”

Further Reading

Trump Administration to Announce Trade Deal With Britain (New York Times)

Donald Trump to announce trade deal with UK (Financial Times)