From Morningstar: 2025-05-09 05:26:00

The US-UK trade deal led to a mixed reaction in the UK stock market, benefiting aerospace firms like Melrose Industries and Rolls-Royce. Tariffs on UK exports such as cars, steel, and aluminum were reduced or removed. Rolls-Royce is set to export tariff-free to the US, with shares up 35% this year.

Jaguar Land Rover and Aston Martin Lagonda will benefit from reduced tariffs on car exports to the US, with shares rising. The UK Prime Minister hailed the deal as protecting British jobs in key sectors like car manufacturing and steel. European automotive stocks also saw gains after the deal announcement.

Morningstar analyst Rella Suskin believes the UK deal won’t significantly impact European automakers, as they have a small US market share. Companies like Unilever and HSBC are confident in managing tariff impacts, while AstraZeneca and GSK are prepared for any potential tariffs on pharmaceuticals. Using AI technology to navigate tariffs is a focus for many companies.



Read more at Morningstar: US-UK Trade Deal: How Have UK Stocks Reacted?