President Donald Trump urged Americans to 'buy stocks now' after announcing a new trade deal framework with the United Kingdom on May 8, 2025. The statement coincided with sharp gains in US equity and cryptocurrency markets as Bitcoin crossed $100,000 and oil prices declined.
Trade Deal Details and Market Impact
The newly announced US-UK trade deal preserves a 10% tariff on imports from the United Kingdom, expected to generate $6 billion in revenue for the US, according to Commerce Secretary Howard Lutnick [1][4]. Despite the tariffs, the deal expands US market access in the UK, creates a $5 billion opportunity for US exports—especially benefiting American farmers—and increases purchasing commitments for US companies, including a $10 billion order for Boeing aircraft by a British airline [1][4].
The deal also establishes an Aluminum and Steel Trading Zone and seeks to expedite US goods through UK customs procedures, aiming to reduce friction in bilateral trade. President Trump described the agreement as the first in a series of anticipated trade deals, emphasizing its "fairness and reciprocity" [4].
Market Reaction and Financial Commentary
Trump’s public call to buy stocks accompanied the deal announcement and his renewed demands for Federal Reserve interest rate cuts. This combination of policy news and direct presidential encouragement fueled broad gains across US equities, with both the S&P 500 and Nasdaq advancing significantly in early-session trading.
Alongside the equity rally, Bitcoin surged past $100,000 and oil prices declined, contributing further to bullish investor sentiment. Analysts noted heightened hopes for Fed action, with traders increasing bets that the central bank will cut rates by July.
International and Industry Perspectives
British Prime Minister Keir Starmer, participating in the announcement via speakerphone, said the agreement would enhance trade, protect jobs, and improve market access for both nations [1][2]. The deal is particularly significant for industries affected by earlier tariffs, such as automotive and steel. However, for UK carmakers, annual vehicle exports to the US beyond the first 100,000 units will be subject to higher tariffs.
Last year, trade between the US and UK amounted to roughly $148 billion, representing around 3% of total US global trade [2].
Analysis
Trump’s combination of a major trade announcement and direct market commentary marks a rare convergence of policy and financial messaging. While the trade deal offers expanded access for US exports and preserves significant tariffs, its immediate impact appears as much psychological as material. Equity and crypto markets responded positively, with the S&P 500 and Nasdaq reflecting the surge in risk appetite that often follows policy clarity and dovish central bank signals. The magnitude of the tariff revenue and export opportunity is significant but must be weighed against the persistent trade barriers that remain for some sectors [1][2][4].
Outlook
The initial market rally underscores investor optimism around improving US-UK trade relations and the prospect of Federal Reserve rate cuts. However, with final trade deal details yet to be completed and tariffs remaining on certain goods, long-term effects will depend on implementation and further progress in US trade policy. Analysts will watch Fed communications closely as July approaches, with market expectations for easing now heightened by Trump’s public statements.