The dominoes are starting to go down. Thursday, the president took to his Truth Social account to announce a “full and comprehensive” trade deal with the United Kingdom. — Rapid Response 47 (@RapidResponse47) May 8, 2025 The timing is fortuitous, coming as it does on the 80th anniversary of Victory in Europe (V-E) Day, which saw the end of World War 2 in Europe. The UK had recently struck a trade deal with its former colony, India. The deal announced Thursday is the second for in a week after it clinched a free trade pact with India. But here’s the bigger deal: The announcement of a trade agreement between the U.S. and the U.K. coincides with upcoming discussions between U.S. and Chinese officials in Switzerland this Saturday. These talks may represent an initial move toward resolving a trade conflict that has the potential to harm the leading two global economies. Early signs suggest the agreement will include reducing American tariffs on British automobiles and steel, among other items. For instance, those driving Range Rovers might find this particularly exciting. While the U.S. already has a strong selection of domestically-produced cars, the steel industry tells a different story. Although the U.K. ranked 26th in global steel production as of 2023, steel remains a critical part of its economy. Globally, steel is an essential commodity; without it, industries like automobile manufacturing, construction of commercial spaces, and production of household appliances would come to a standstill. Everything from hospital beds to power line towers would be impacted by a shortage. Currently, China leads the world in steel production. However, Chinese steel is often criticized for not meeting the quality standards that American or British steel does, with numerous reports highlighting these issues. While President Trump has promised to boost American steel production, forming a trade agreement on steel with Britain could also be beneficial. The United Kingdom is the first major nation to make a new trade deal with the United States, but if the president’s plan works, it sure won’t be the last. Nations, like people, can be subject to preference cascades, and when one nation strikes a good trade deal with the largest economy in the world – the United States – others will be watching. India is reportedly coming to the table. As noted above, talks with China are starting, and China is under enormous pressure right now to make some kind of deal.