The United States and the United Kingdom declared a trade agreement on Tuesday that will ease certain U.S. tariffs on British goods, though some will remain in place. U.S. President Donald Trump and British Prime Minister Keir Starmer praised the deal as a crucial move toward strengthening trade relations.
The move marks the first trade agreement the United States has secured since the White House’s broad reciprocal tariffs disrupted global stock markets and heightened concerns about U.S. recession.
Trump and Starmer affirmed the trade agreement during a live broadcast phone call. Trump emphasized that the deal is expected to generate $6 billion in external revenue and create $5 billion in new export opportunities.
As per the agreement, the U.S. will eliminate 25% tariffs on British steel and aluminum, reduce duties on British car imports from 27.5% to 10%, and grant tariff-free access to Rolls-Royce engines and aircraft components. In return, American companies will gain broader market access to British beef, ethanol, and other agricultural goods valued at around $5 billion, while the U.K. commits to purchasing Boeing planes worth $10 billion.
The agreement would also enhance national security for both countries by creating an aluminum and steel trading zone and securing the pharmaceutical supply chain.
The U.K. prime minister stated that all tariff reductions would be implemented at the earliest possible time. The agreement is part of Britain’s ongoing push to establish new trade deals after Brexit. Over the past five years since departing from the European Union, the country has been negotiating trade terms with individual nations and recently finalized a broad trade pact with India.
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