Markets rallied Thursday as investors awaited a trade agreement between the United States and United Kingdom. Mr. Trump is set to announce the deal at 10 a.m. ET from the Oval Office.
The S&P 500 rose 14 points, or 0.25%, to 5,645 in early trading, while the Dow Jones Industrial Average rose 89 points, or 0.22%, to 41,203. The Nasdaq composite also made gains, increasing 0.5%.
Before the deal was announced, Mr. Trump posted on his Truth Social platform saying the agreement would be “full and comprehensive” and that it would “cement the relationship between the United States and the United Kingdom for many years to come.”
In April, the Trump administration placed a 10% tax on imports from Britain, as well as 25% tariffs on autos, steel and aluminum, delivering a blow to the U.K., which exports a large percentage of British cars to the United States. British cars accounted for more than a quarter of U.K. auto exports in 2024, according to the U.K.’s Office for National Statistics.
Shares in Europe also jumped amid news of a potential trade deal between the United States and United Kingdom. France’s CAC 40 and Germany’s DAX were each up by 1.1% by midday, while Britain’s FTSE 100 added 0.3%.
The deal with the U.K. is expected to be the first in a string of many between the U.S. and its key trading partners. Earlier this week, Treasury Secretary Scott Bessent told the House committee Tuesday that the U.S. has 18 “important trading relationships” and is currently negotiating with 17 to reach deals.
The U.S.-U.K. deal could be an encouraging start, but bigger trading partners could offer bigger hurdles, including China.
The world’s second-largest economy again on Thursday called on the United States to cancel its tariffs, ahead of talks between Treasury Secretary Scott Bessent and a high-level Chinese delegation this weekend, which the Trump administration announced Tuesday.
Meanwhile, Trump on Wednesday said that he wouldn’t reduce his 145% tariffs on Chinese goods as a condition for negotiations. China has also re-upped its call for the U.S. to slash its unilateral tariffs.
In a press briefing Thursday, Commerce Ministry spokesman He Yadong told reporters that the US “needs to show sincerity to talk and be prepared to rectify its wrongdoing and cancel unilateral tariffs,” according to Bloomberg.
Citing uncertainty around the Trump administration’s trade policies, the Federal Reserve announced Wednesday that it would leave its benchmark interest rate at its current range of 4.25% to 4.5%.
The Associated Press
contributed to this report.
Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.
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