STORY
The United Kingdom and the United States have unveiled a significant trade agreement aimed at reducing tariffs and enhancing economic ties between the two nations. This deal marks the first major bilateral trade accord since the UK’s departure from the European Union and the first under President Donald Trump’s renewed tariff regime. Under the new agreement, the United States will reduce tariffs on British car exports from 27.5% to 10% for up to 100,000 vehicles annually. Additionally, tariffs on British steel and aluminium exports will be eliminated entirely within specified quotas. Tariffs on US ethanol and UK-manufactured Rolls-Royce aircraft engines will also be removed.
President Trump hailed the deal as a “full and comprehensive” agreement that will “cement the relationship between the United States and the United Kingdom for many years to come.” He emphasised that the agreement would open up billions of dollars in new export opportunities for American producers and strengthen national security for both countries. UK Prime Minister Keir Starmer described the agreement as a “historic day” and a testament to the close working relationship between the two nations. He highlighted that the deal would boost trade, protect and create jobs, and open market access, particularly benefiting the UK’s automotive and steel industries.
The agreement maintains the UK’s food safety standards, with no concessions made on importing chlorine-washed chicken or hormone-treated beef. However, concerns have been raised about potential UK concessions on digital regulation and tech taxation, areas that remain under negotiation. While the agreement is seen as a significant step in strengthening US-UK economic relations, some opposition MPs have called for greater parliamentary scrutiny of the deal’s terms. The UK continues to pursue additional trade agreements, including recent negotiations with India and efforts to ease trade barriers with the European Union.