The UK’s FTSE 100 saw a sharp decline following the announcement of a new trade deal with the US. This came after Wall Street enjoyed consecutive winning days, fueled by optimistic investor sentiment towards growing tech markets and potential economic benefits. Despite the UK becoming the first country to sign such an agreement under President Trump’s imposed tariffs, market participants showed unease over the lack of significant tariff reductions. A deeper dive into the new trade deal revealed that certain concessions from the UK were dropped, such as a lower tariff rate on its initial 100,000 vehicle exports to the US. The UK’s decision also involved securing new negotiation terms for Trump’s universal steel and aluminum tariffs. Meanwhile, the Bank of England lowered interest rates to 4.25% in response to slower price inflation. Despite economic uncertainty, both nations agreed to work towards expanding market access for goods and services. President Trump highlighted the agreement as a major milestone with the UK, paving the way for increased American exports, particularly in agriculture.