The Worst Thing Trump Did on 5/8/25

Let's talk about Trump's "major trade deal" with the UK.

First off, it's not a trade deal.  He cannot impose a trade agreement without Congressional approval, which he does not have. This is the bare bones of a framework, which is more of just a handshake deal between the two countries. 

One bit of tariffs that was lifted was on steel and aluminum imports, and products that are made from steel and aluminum.  The raw steel and aluminum are more of a one-way street, because the cost of power to produce steel and aluminum in the US is cost-prohibitive (thanks to the massive energy demands of AI).  UK producers love this concession, but it still has a minimal impact on the industry. This is a win for the UK and a slight positive for the US

Cars still have a 10% import tariff in both directions.  Once again, British cars coming to the US will be more expensive.  But Trump did agree to lower the rate from 25% to 10% on 100,000 UK cars, after which the import tariff is 27.5%.  This is still a negative for both countries. 

Nothing was negotiated on pharmaceuticals or the digital service tax the UK imposes on online social media, search engines, and online marketplaces. So no movement there.

Here's the point Trump hails, which is really a non-existent benefit. The UK agreed to drop the 20% tariff on US beef imports and increase the amount of US beef imported from 1000 tons to 13,000 tons.  This is the same quota the UK has with other countries.  Sounds great, until you realize that these numbers mean very little, considering the UK will not allow US beef treated with growth hormones into the country. The VAST majority of US beef is treated with beef hormones, so this will not increase any beef imports outside of organic beef, which is still subject to inspection, as GMO crops are being fed to the cattle (hence the UK might limit that beef too). Overall, this is a slight improvement, but unlikely to fuel anything but a slight positive with pure organic operations.

The UK agreed to drop the tariffs on importing US ethanol, which is the one good to this deal.

But a reminder, the 10% tariff on the vast majority of products from the UK remains in place, and that means everything is more expensive.  

This is not an improvement.  This is smoke and mirrors.