Trump’s Trade Deal with the UK: Not a Good Omen for the Rest of the World, Says CNN

After a month of negotiations between the US and the UK, Trump is celebrating what he calls a ‘full and complete’ deal with ‘our old friends’ across the Atlantic. However, according to CNN analysis, what actually exists is a half-baked US-UK trade agreement covering very few items, even as Trump’s tariffs against all countries remain in place. British Prime Minister Keir Starmer echoed Trump’s sentiments, calling it a ‘historic’ deal. Yet, Allison Morrow, an American columnist for CNN, described it vividly: ‘If a trade deal is like Michelangelo’s David, this one is more like a piece of marble… or perhaps just proof that we ordered a block of marble.’ Morrow suggests perhaps we should put the champagne back on ice. The so-called ‘full and historic’ trade deal between the US and the UK covers only four areas: reduced taxes on British cars, duty-free airplane parts exports, removal of steel and aluminum tariffs, and mutual tariff-free exports of beef and other agricultural products. Joe Brusuelas, chief economist at RSM, noted that ‘a trade deal where details are still being negotiated isn’t really a deal,’ explaining that it doesn’t provide the necessary clarity to lift the uncertainty cloud created by a trade war. Despite White House announcements hailing this bilateral trade agreement as monumental, Wall Street did not let perfection become the enemy of good. Stocks rallied in the US as investors embraced any sign that Trump might ease his trade war stance. It took over a month to finalize this ‘monumental nothing’ with one of America’s closest allies, representing just 3% of total US trade, admits Justin Wolfers, an economics professor at the University of Michigan. This does not bode well for thousands of paralyzed American businesses or the US’s third-largest trading partner. American and Chinese officials are set to meet this weekend (May 10-11, 2025) in Geneva, though U.S. officials aren’t hinting at any trade deal outcome—Treasury Secretary Steve Mnuchin hopes for mere ‘de-escalation.’