"The US-EU trade deal reshapes the playing field for the UK"

FOLLOWING a meeting between Donald Trump and European Commission President, Ursula von der Leyen, at Trump's Turnberry golf course yesterday, a trade deal between the US and EU was finally struck — and experts have said it will impact the 

After a standoff lasting months, there will be a flat US tariff on EU goods of 15%, as opposed to the 30% originally threatened by President Trump.

John Woolfitt, Director at Atlantic Capital Markets commented: “The US-EU trade deal reshapes the playing field for the UK. The UK may enjoy a short-term competitive gain, but only if it takes the opportunity to strengthen its own trade ties with the US and insulate itself from second-order effects like supply chain disruptions or rising input costs. Markets are likely to respond with cautious optimism. It will give UK exporters to the US a competitive edge and UK firms may gain a pricing edge over EU rivals in the US market if UK-US trade remains tariff-free or less restricted. The deal may revive urgency in the UK government to expedite a UK-US trade agreement to avoid being squeezed between two giants with their own terms. If the US gains greater trade leverage globally, consumer goods from the US may flow more freely into the UK, especially as the UK seeks to diversify trade partners. However, if UK consumers rely on EU-sourced goods now facing US tariffs, global pricing pressures could increase costs.”

David Belle, Founder and Trader at Fink Money commented: “Markets are relatively muted this morning, as the tariff story hasn’t actually been a story for a while now. The markets have long since digested that some tariff would be imposed, and the 15% has been priced in for quite a while. Where we might see some turbulence is in the specifics perhaps — LVMH shares were lower last week, perhaps in preparation for this tariff imposition. But right now, it’s definitely looking to me like the markets are taking tariffs in their stride.”

Tony Redondo, Founder at Cosmos Currency Exchange commented: “The Dollar/Euro currency pair is the world’s most traded currency pair. The Dollar should strengthen on the back of this US-EU trade deal, which includes a 15% tariff on EU goods. The Pound could benefit against the Euro due to the UK’s prior US deal (10% tariff), boosting sectors like automotive and aerospace. UK exporters will gain a 5% cost advantage over EU rivals, potentially increasing foreign direct investment and job creation. However, EU trade barriers may intensify, hurting UK exports like agrifood. Consumers may see lower fuel and beef prices, but the bioethanol and fishing sectors face risks. UK markets, especially export-driven sectors, should see gains, but global trade tensions and US legal challenges to tariffs pose risks. The UK’s balancing act between US and EU trade is key.”

Scott Gallacher, Director at Rowley Turton commented: “Despite Trump’s claims, no one really wins here, except perhaps his billionaire friends who benefit from tax cuts while everyday consumers and businesses foot the bill. This deal looks like a loss all around. For EU businesses, it means reduced competitiveness and falling sales in the US. For American consumers, it means higher prices on imported goods. And for the UK? While British exports may become relatively more attractive than EU goods — a small potential win for UK businesses — that advantage is undermined if US consumers are tightening their belts due to rising costs across the board. So while Musk, Bezos and their peers might be cracking open the champagne — albeit at slightly higher prices thanks to the tariffs — the rest of us are more likely to be drowning our sorrows.”

Philly Ponniah, Chartered Wealth Manager at Philly Financial commented:

“Markets hate uncertainty so this deal is a relief more than a gamechanger. The 15% tariff is lower than feared, and that’s already priced in. For UK markets, it’s one less risk clouding the outlook but not a reason to reprice assets overnight.”