United States President Donald Trump and United Kingdom Prime Minister Keir Starmer announced a trade agreement on Thursday, which will lift some U.S. tariffs on British goods, though others will remain in place.
This marks the first such deal for the Trump administration since the introduction of significant tariffs last month, which raised concerns in financial markets. Trump emphasized that the agreement would provide American companies with improved access to the UK market for beef, ethanol, agricultural products, chemicals, machinery, and industrial goods, valued at approximately $5 billion.
However, discussions on non-tariff barriers for U.S. meat products are still ongoing. Trump mentioned that the final details of the agreement will be finalized in the coming weeks.
The deal maintains a 10% tariff on most British goods entering the United States but removes the 25% tariff on British steel and aluminum and reduces tariffs on most cars exported from the UK from 27.5% to 10%.
Starmer, speaking from a Jaguar Land Rover factory in the British Midlands, emphasized that the agreement would protect British businesses and preserve jobs, noting that the tariff reductions would take effect “as soon as possible.”
The agreement is part of the UK’s effort to establish new trade relationships following its departure from the European Union, including a recently signed comprehensive deal with India.
U.S. Commerce Secretary Howard Lutnick announced that Rolls Royce engines and aircraft parts will be imported tariff-free, with a forthcoming announcement of a $10 billion purchase of Boeing aircraft.
Trump described this as the first of several trade deals his administration aims to secure, highlighting ongoing negotiations with Japan, South Korea, Vietnam, and India.
