Key insights
- Trump's threat to rework the US-UK trade deal introduces uncertainty. This could negatively impact US equities by disrupting trade flows and increasing geopolitical risk. The dispute over Iran further strains relations, potentially affecting oil markets and broader investor sentiment. However, the overall impact on US equities is likely limited unless the trade dispute escalates significantly.
Investing.com -- US President Donald Trump indicated Wednesday that he may reconsider the terms of a trade agreement reached with the United Kingdom, citing disagreements with British domestic policies and Prime Minister Keir Starmer.
"We gave them a good trade deal. Better than I had to. Which can always be changed," Trump told Sky News in an interview published Wednesday.
Trump and Starmer agreed last year to implement a trade pact that lowered tariffs on key British exports and raised UK quotas on certain American agricultural products. The deal was considered more favorable compared to agreements struck with other US allies.
The comments come as the two countries engage in a dispute over Britain’s reluctance to participate in the US war in Iran. Trump told Sky News that a deal with Iran is "very possible" by the time the King visits the US later this month.
"They’re beaten up pretty bad. It’s very possible," Trump said.
As of the latest update on the war, the U.S. has fully implemented a blockade on Iran’s ports and shipping, Central Command said on Tuesday, days after President Trump ordered the move to pressure Tehran into a ceasefire.
When asked about the state of the relationship between the US and UK, Trump said it has "been better."
"How is the relationship? It’s the relationship where: when we asked them for help, they were not there. When we needed them, they were not there. When we didn’t need them, they were not there. And they still aren’t there," Trump said.