After Trump announced the trade agreement with the UK, expectations for easing trade tensions drove Bitcoin to break the $100,000 mark for the first time since February, surging over 7% in the early hours of Friday, reaching $104,000 per coin; Ethereum soared over 20% during the day, breaking $2,180 per coin.
The dollar's rally expanded, weakening the safe-haven demand created by fears of a global trade war, causing gold to decline. Spot gold briefly fell below the 3300 mark overnight, with a drop of nearly 2%. Following Trump's urging for investors to 'go out and buy stocks now,' the US stock market surged to intraday highs.
On the 8th, Trump announced at the White House that the US and UK have reached a new trade agreement, partially withdrawing tariffs in specific areas and further expanding market access for both parties' products.
According to documents released by the White House, the first 100,000 cars exported from the UK to the US each year will be taxed at an additional tariff rate of 10%, while the excess will be taxed at an additional tariff rate of 25%. The UK will reduce or eliminate non-tariff barriers and expand market access for US beef, ethanol, grains, and some industrial products.
The UK government issued a statement on its official website that tariffs on steel and aluminum products exported from the UK to the US will be eliminated. Tariffs on cars imported from the UK to the US will be reduced from the current 27.5% to 10%. Additionally, within a certain quota, UK agricultural products exported to the US will also be subject to zero tariffs. The UK will reduce tariffs on ethanol imported from the US to zero.
In addition, the White House emphasized that the 10% so-called 'reciprocal tariffs' previously imposed on trade partners will continue to be maintained.
UK Prime Minister Stamer stated that the US-UK trade agreement will reduce tariffs on 100,000 British cars per year from 27.5% to 10%. 'The agreement will eliminate tariffs on British steel and aluminum, bringing them down to zero,' and will 'provide unprecedented access for British farmers without compromising our high standards.' According to industry data, last year, the UK exported £370 million ($492 million) worth of steel to the US, accounting for 9% of the UK's total steel exports.
Stamer added during a speech at the Jaguar Land Rover factory: 'We are sending a message to the world that the UK is open for business: seeking a trade agreement with India on Tuesday, pursuing a trade agreement with the US today, and striving to promote trade with other partners, including, of course, the EU.'
Stamer defended his relationship with Trump. 'In recent years, there has been a view that sometimes you show your strength by rejecting your allies.' He said, 'Many people urged me to do this... but that is not how this government operates.'
Trump stated that the agreement means the UK will 'accelerate' the speed of American goods through customs procedures, but he indicated that 'we can resolve some details.'
Trump said: 'Through this agreement, the UK and the US reaffirm that reciprocity and fairness are important principles of international trade. This agreement includes billions of dollars in increased market access for US exports, particularly in agriculture, greatly increasing market access for US beef, ethanol, and nearly all products produced by our great farmers.'
In a social media post released during Trump's phone call with Stamer, Trump called the trade agreement with the UK 'historic' and stated that today is 'an extraordinary day for America.' 'Together with our strong ally the UK, we have reached the first historic trade agreement since 'D-Day,' Trump said. 'This agreement shows that if you respect America and make serious proposals, America is open for business. More will come - stay tuned!'
The three major auto groups in Detroit stated that Trump's trade agreement with the UK 'harms American automakers, suppliers, and auto workers.'
Paul Ashworth from Capital Economics said in a report: 'This eagerness to showcase the progress of the 'agreement' indicates an increasing urgency within the government to recover tariffs before they impact GDP growth and inflation. Although Trump's comments suggest that the 10% baseline tariff seems likely to remain, even broad details still appear to be unclear.'
US Secretary of Commerce Lutnick said: 'I am focused on the next major trade agreement. We hope to reach a trade agreement with a major country from Asia.'
Polls show that Americans are disappointed with Trump's economic management, and Thursday's agreement indicates that Trump is seeking an exit for his plan to raise US tariffs to the highest levels in a century. Trump has now begun to pull other countries to the negotiating table, stating that his tariff plan is aimed at achieving this goal. The government has pushed for negotiations with India, Japan, and South Korea.