UK Markets React Negatively to New US-UK Trade Deal as FTSE 100 Dips

London’s financial markets showed clear dissatisfaction with the newly announced US-UK trade agreement, as evidenced by the FTSE 100 closing lower on Thursday. The United Kingdom became the first country to finalize a trade deal with the US under the current administration, yet the terms appear to favor American interests disproportionately.

Despite the fanfare surrounding the agreement, the US maintained its 10% tariff on UK imports—a measure initially imposed by President TRUMP on April 2. The White House disclosed select details of the pact, though no formal signing ceremony occurred in the Oval Office. Meanwhile, Wall Street celebrated with three consecutive winning sessions across major indices.

The Bank of England’s simultaneous decision to cut rates to 4.25% failed to offset the market’s bearish sentiment. Analysts note the US already enjoys a trade surplus with Britain, exporting significantly more goods than it imports—a dynamic this agreement does little to rebalance.