At the G7 summit in mid-June 2025, a big news emerged — Trump signed a US-UK trade agreement together with British Prime Minister Starmer, which is quite significant, as it is said to ignite the economic relationship between the two countries.
The main content of the agreement includes several points:
British cars sold to the US will see tariffs drop from 25% to 10%, but only a maximum of 100,000 vehicles can enjoy this benefit each year; any excess will still be charged at 25%; for the first time, the US is granting a 10% preferential tariff on aerospace products like British aircraft engines and parts, which is unique to the UK; the UK has eliminated the 20% import tariff on US beef and additionally allowed 1.4 billion liters of US ethanol to enter the UK tax-free; discussions will continue in areas like steel, aluminum, pharmaceuticals, and digital trade.
However, some issues remain unresolved: the US has not lifted the 25% high tariff on UK steel and aluminum, and other goods still maintain a 10% tax rate. Moreover, this agreement still needs to be approved domestically in both countries, which is expected to involve quite a bit of negotiation.
Looking at the market, this agreement is likely to boost US-UK trade to reach £100 billion. With reduced costs and accelerated innovation, industries such as automotive, aviation, and agriculture are expected to benefit particularly. On a larger scale, it may also disrupt the global supply chain and rearrange rankings, potentially serving as a reference for other countries in trade negotiations.
Seeing that the economy is stabilizing, everyone may be more willing to invest in stocks and other risk assets, leading to a warmer market sentiment. New global trade rules are slowly taking shape, and whether you are buying stocks or doing business, everyone needs to rethink their investment strategies and portfolio arrangements.
However, Brother Yong believes that historical data shows that positive news is often illusory, and the real collapse is what ultimately happens. What do you think, brothers? 🤔
Today’s focus: OM SUI SOL FUN BTC
