UK and the United States have agreed terms for a tariff trade deal

The United States and the United Kingdom have unveiled a targeted trade agreement that reduces tariffs on British exports of cars, steel, and aluminum to the U.S., while expanding access for American beef in the U.K. market.

Announced Thursday by President Donald Trump and Prime Minister Keir Starmer, the agreement will remove the U.S.’s 25% tariff on British steel and aluminum and lower the tariff on British car imports from 25% to 10% on up to 100,000 vehicles annually. In return, the U.K. will eliminate tariffs on ethanol and open its market to more American beef.

This is the first significant deal announced by Trump since his sweeping tariff measures introduced in April, many of which have since been adjusted. While not a full-scale trade pact, both leaders signaled it as a step toward a broader agreement. The deal is likely to be closely examined by other nations, including Canada, which also faces U.S. tariffs on metals and autos.

The White House emphasized that the U.K. agreement reflects the administration’s broader push for reciprocal trade. “With this agreement, the U.K. affirms that fairness and reciprocity are the cornerstones of international trade,” Trump said, speaking from the White House, while Starmer joined remotely from London.

Trump highlighted the economic potential of the deal, stating it would significantly expand U.S. agricultural exports, particularly beef and ethanol. “This includes billions in new market access for our great farmers,” he said.

“This is truly a historic and fantastic day,” Starmer responded, noting the symbolic significance of the deal being announced on the 80th anniversary of Victory in Europe Day. “As you said, Donald, the timing couldn’t be more fitting. Eighty years ago today, our nations stood side by side as allies. Today, we continue that partnership.”

The deal is a major political win for Starmer, who has struggled during his first year as Prime Minister and recently saw major losses for his Labour Party in local elections. It also follows closely on the heels of Britain’s recent trade agreement with India, and comes as the U.K. works to enhance trade relations with the European Union.

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