(Bloomberg) — President Donald Trump pitched his trade framework with the UK as a historic achievement, and the first step in his revolutionary effort to overhaul the global economy.
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But as the president began revealing specifics of the deal, it became clear it fell short of the “full and comprehensive” agreement he had promised, or the US-UK free-trade pact he pursued during his first term.
Trump had hoped the announcement — pegged to the 80th anniversary of the Allies’ World War II victory in Europe — would reignite confidence in his economic agenda. He carefully stage managed the ceremony, posting hints to social media and having UK Prime Minister Keir Starmer dial in to the phone sitting on the Resolute Desk to herald the agreement.
The framework gives the US increased market access and a faster customs process for exports to the UK, while the UK will see limited relief on autos, steel and aluminum duties. Many other details were left to be negotiated later.
“From the point of view of markets generally, as well as those who are concerned about the US economy, this is a nothingburger,” said Tim Meyer, an international trade law professor at Duke University School of Law. “There’s nothing really to see here. Obviously this is a framework, this is not actually an agreement.”
Starmer conceded the pair needed to “finish ironing out some of the details,” but hailed the understanding as “fantastic.” Trump brushed aside questions about whether he had over hyped the agreement, instead framing it as “a great deal for both parties.”
“Every country wants to be making deals,” he added.
Facing declining poll numbers, Trump has been eager to declare a win as his tariff agenda has destabilized global markets and raised the prospects of a recession. Trump argues that his efforts are worth short-term pain because they will will increase investment in the US. But he is clearly seeking to show progress and calm economic anxiety.
Trump is moving “as fast as you can go without screwing it up. We’re not screwing it up, and you’re going to see deals,” White House trade adviser Peter Navarro said on Fox Business.
Investors responded positively on Thursday, with almost every major corner of the stock market advancing.
But the deal punted on some of US businesses’ biggest concerns in the trading relationship. The UK will maintain its digital services tax hitting major US tech firms, with only a vague promise to work toward a future digital trade agreement.
