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One World with Zain Asher
Trump and Starmer Announce U.S.-U.K. Trade Deal. Aired 12-12:08p ET
Aired May 08, 2025 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[12:00:00]
BIANNA GOLODRYGA, HOST, ONE WORLD: All right, hello, everyone. Live from New York I'm Bianna Golodryga.
ZAIN ASHER, HOST, ON E WORLD: And I'm Zain Asher. You are watching One World.
I just want to quickly recap the breaking news to you out of India, and Indian army spokesperson told CNN that explosions were heard in Jammu City,
which is in Indian-administered Kashmir.
GOLODRYA: Yes, the spokesperson said a blackout is in place. We will bring you more information in as we get it.
Now, a complete blackout there, that we said was in place, came with a loud explosions, bombings, shellings, a missile strike suspected. And this is
what the former Director General of Gamu and Kashmir police have posted on X right now. So that's the information we have.
As you heard in that conversation, an interview with Wolfe and Pam, the - with the ambassador from India to the United States was stressing that
their response was retaliatory to the terror attack two weeks ago. And now they are accusing Pakistan of escalating as we noted. We are anticipating
an interview with the Pakistani ambassador later on our show, just as this tension continues to heat up. Remember, two rivals, two nuclear -
(CROSSTALK)
ASHER: Two power rivals -
GOLODRYGA: -- power rivals here.
ASHER: Yes, and of course, India continuing to blame Pakistani terrorists for the attack that we saw in Indian-administered Kashmir on the 22nd of
April.
All right, we are also anxiously waiting to see if there is a new pope. And we could hear that at any moment.
GOLODRYGA: Yes, all eyes are on the most famous chimney right there. The question now is will it be black or white smoke? No one knows for sure
except for the 133 cardinals who are trying to chose the new leader of the Catholic church right now.
ASHER: Yes, they weren't actually able to do that during this morning's voting and they released this plumb of black smoke, telling the world that
they hadn't decided on who the next pontiff was. The voting, though, continues to go on. And, of course, we are watching that chimney very
closely on the screen.
GOLODRYGA: And if that wasn't enough news to follow -
ASHER: Oh my gosh, so much news.
GOLODRYGA: -- there's yet another breaking news story, more than a month after President Trump launched a global trade war, he is now celebrating
what is his first new trade deal.
ASHER: Yes, this all happened about an hour ago in the Oval Office, the U.S. President unveiled the framework of a trade agreement with the U.K.
U.K. Prime Minister Keir Starmer, was on the phone and he also praised the deal as well, saying it provides economic security for the U.K.
Officials on both sides are stressing that this is not a comprehensive agreement and it merely lays out the steps for a more complete deal. So
this is just the beginning, according to officials. But it is an important first step and could provide guidelines for other countries who are also
trying to negotiate deals with the U.S. too.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES: Today's agreement with the U.K, is the first in the series of agreements on trade that my
administration has been negotiating over the past four weeks. With this deal, the U.K. joins the United States in affirming that reciprocity and
fairness is an essential and vital principle of international trade.
(END VIDEO CLIP)
ASHER: All right let's go now to CNN Politics and Business Correspondent Vanessa Yurkevich.
Vanessa, I'm curious, I haven't actually been able to check the markets because we've just literally had so much breaking news on air.
But what is the market reaction to this U.K., U.S. trade deal, because we knew that it was coming last night. So just walk us through on what we've
seen and what investors are saying.
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes, I've actually been watching markets over the last hour and mostly they've been a
little tepid in beginning to this announcement by President Trump about this deal with the U.K. They knew it was coming. And I think that
investors, very much, anticipated that this deal would not be a full deal. It would just be a framework of more of what's to come.
But you can see over the course, let's see, the 11:00 to 12:00 hour, you saw the Dow starting to take off a little bit. And that's because the
president shifted from talking about the deal between the U.S. and the U.K. to actually what might be happening with China.
We know that investors really want to see deals or deescalations with China, with Vietnam and India.
The U.K. is really an ally. We have a trade surplus with the U.K., so they don't see that, the U.K. as a sort of a major player in negotiations. Of
course, any deal is good because it could be a jumping-off point for other countries.
[12:05:00]
But really, once the president started talking about where things maybe stood with China, that they may be willing to come to the table, that there
may be some conversations ongoing, that's when we saw - excuse me - a lift in the markets. The Dow was up and the Dow is up, actually, 568 points
right now.
But I thought that this deal and this framework was interesting because that 10 percent universal tariff, that's still in effect with the U.K. That
hasn't gone away.
Essentially, what the president has wanted is for the U.K. to just buy more from the United States. And in some ways he's getting a little bit of that.
One of the major selling points that we heard from the president here was that the U.K. was going to buy more agricultural products, including beef.
That is important because the U.K., right now, because of their industry standards, doesn't buy U.S. beef.
And so, that is a shift that is apparently, according to the White House, going to generate about $5 billion worth of purchases for U.S. farmers who
are currently, I will note, being walloped right now, especially on soybean exports because China is simply not buying soybean from the United States
right now because of those incredibly high tariffs. Instead they're looking to Brazil to buy their soybeans.
Also worth noting that there's going to be a reduction on tariffs for vehicles. Just the first 100,000 vehicles that are imported into the United
States from the U.K., they'll get a 10 percent tariff. But after that 100,000, it's going to go back up to that 25 percent tariff on foreign
imports.
And worth noting, I thought it was interesting what Commerce Secretary Lutnick said about how this all kind of went down, how the U.K. was able to
make these promises to buy more machinery, more U.S. agricultural products, it was because Howard Lutnick said that the U.K. decided to move away from
other trading partners and refocus their purchases from the United States. So, clearly, a reorganization in the U.K. about where they're going to be
prioritizing bringing in their imports.
Also worth noting, that the United - that the United Kingdom is now committing, a company there - and airline there is committed to buy $10
billion worth of airplanes from Boeing. We know that that announcement is going to come later in the day from the U.K.
But just a prelude to, again, the president's efforts here really to try to get the U.K. just to buy more U.S. goods. This is just the beginning,
officials say, of what is to come. It is loose in framework, not a ton of details but certainly significant in the fact that this the first deal that
we are seeing come together between the administration and another country, as that ticking clock is running out of that 90-day pause on those higher
reciprocal tariffs.
Remember, that the U.K. is at - still at that 10 percent level, that universal tariff is still there, but some details being worked out where
maybe there's a little bit of buying going on by the U.K. of U.S. products and a little bit of negotiation and leverage on the U.S.'s part to sort of
give the U.K. a little bit of a discount, let's say, on those vehicles, the auto vehicles coming into the United States.
But more to come, clearly, from the two sides. But this is the initial readout of what's been going on in the Oval Office.
ASHER: Yes, and as you talk about ticking clock, I mean the longer this whole thing goes on for without more deals being announced, the more
economic damage there is for -
YURKEVICH: Yes.
ASHER: -- the U.S. economy.
GOLODRYGA: And empty store shelves.
ASHER: Exactly. I mean, we talk a lot about - we've talked a lot today about just how much of a political win this is for Keir Starmer but,
obviously, Donald Trump's under pressure too.
All right, Vanessa Yurkevich live for us there. Thank you.
GOLODRYGA: Okay, and we have some breaking news. We are going to go to our domestic coverage for that.
END
