Donald Trump just claimed there’s a new US-UK trade deal coming on Truth Social. This agreement is supposed to help stimulate the economy. The full details of the deal will be made public on Thursday at 10 a.m. ET. This announcement is especially timely as the scrutiny around economic issues, including inflation, continue to grow.
In his post, Trump highlighted that oil and energy costs have decreased, along with nearly all other expenses, including groceries and eggs. He trumpeted his success at driving down the “virtually no inflation” and bragged about how the tariff revenues are “pouring into the U.S.” His comments were an unmistakable rebuttal to bad faith criticisms that it’s somehow “too late” to tackle or mustn’t pay for today’s economic problems.
“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,” Trump stated, underscoring the significance of this trade deal.
This announcement comes on the heels of a breakout trading session on Wall Street. Smarter investors are looking everywhere for indicators of improvement in global trade and directionally in the global economy. Even after the latest turn of events, experts say that U.S. equity positioning is not as bullish as expected.
Chris Montagu, an analyst, pointed out that “De-escalating trade tensions and a better-than-expected earnings season have led to a period of stability for investor positioning. The uplift from bullish flows has been considerably restrained.”
The upcoming trade deal follows Trump’s recent implementation of steep tariffs on imported goods last month, which has stirred discussions about the impact on international trade dynamics. Investors are tuned into all of these goings-on while processing third quarter earnings releases from dozens of companies.
Out of the pile, Arm Holdings’s first quarterly report card didn’t do the company any favor. Its stock tumbled 9% on the news. In contrast, business was booming for AppLovin, whose share price skyrocketed 13% in after-hours trading yesterday after the tech company reported quarterly results that topped Wall Street’s expectations.
The announcement of the trade deal comes at a time when uncertainty about the US economic outlook is sharply on the rise. According to anecdotal accounts from the field, worry over escalating unemployment is becoming the “new normal.” Concurrently, inflationary pressures are growing, creating a challenging environment for economic policymakers.
Trump’s claims are a clear signal of his continuing loyalty to pursue bold action to correct America’s economic ills despite naysaying opposition. He reiterated his stance on monetary policy, stating: “Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!”