The first agreement struck by the White House since imposing harsh new worldwide tariffs last month is the framework for a trade deal with the United Kingdom, which President Donald Trump revealed.
U.S. agricultural, chemical, mechanical, and countless other industrial goods will get greater access to the British market as “the final details are being written in the coming weeks,” Trump announced at a ceremony in the Oval Office.
since an ally, the United States will help with the other country to strengthen its industrial base, implement fair export controls, and safeguard vital technology and industries like steel, since both nations have acknowledged that economic stability is a matter of national security.
American cattle, ethanol, and almost all of the products made by our great farmers will see a major rise in access to international markets as a result of the deal’s billions of dollars in greater market access, according to Trump. Nevertheless, during the White House event, Agriculture Secretary Brooke Rollins admitted that several delicate aspects about any potential future access for agriculture still need to be worked out. Another representative from Starmer’s office clarified that the leaders of the United Kingdom “are not going to lower British food standards”—the primary obstacle to agricultural exports from the United States to the United Kingdom.
For the first 100,000 vehicles entering the United States, the Trump administration has agreed to reduce the additional tariff on autos and auto parts from 25% to 10%. In exchange, the two nations will work out a new “alternative arrangement” to replace the 25% tariff on steel and aluminum imports.
Earlier this year, Trump backed out of an alternate steel and aluminum deal that Democratic President Joe Biden had negotiated with the United Kingdom, Japan, and the European Union.
While Democrats were eager to point out that Trump put a 10% baseline duty on the United Kingdom and all other trade partners as part of his so-called “Liberation Day” move on April 2, the framework unveiled on Thursday keeps this tariff in place.
My first reaction upon learning of the proposed “deal” with the United Kingdom was one of skepticism. The ranking Democrat on the Senate Finance Committee, Ron Wyden (D-Ore.), stated, “I am still” following today’s news conference.
“Not even the specifics are finished. In that spot, you won’t find much. According to Howard Lutnick, the 10% tariffs that Trump imposed on the UK will remain in place indefinitely. According to Wyden, this means that American consumers and companies will continue to bear the brunt of the price increases caused by Trump’s careless worldwide tariffs.
The elimination of the UK duty on ethanol was one of the concessions, which was good news for American corn producers because their crop provides the feedstock for the fuel. Additionally, 13,000 metric tons of American beef will be able to enter the UK tariff-free.
Beef from cattle fed with artificial growth hormones, a popular technique in the United States that many other nations find distasteful, will not be available for quota beef because the British government is certain that it would not lower its food standards.
According to the U.S. Department of Commerce, the deal will open up new export prospects for American manufacturers, ranchers, and farmers worth $5 billion. Produce, ethanol, meat, tobacco, seafood, textiles, and animal feed are all part of this category.
U.S. exports to the United Kingdom reached about $80 billion in 2024, and if that were to come to fruition, it would represent a 6 percent rise. U.S. exports would increase, but only little, from $2 trillion in 2017 to $2 trillion in 2018. The White House announced an increase in export expectations, which include ethanol shipments of over $700 million and agricultural product exports of $250 million, among others.
The White House claims that additional provisions will facilitate U.S. firms’ ability to compete in the UK procurement market, simplify customs procedures for U.S. exports, set high standards in the areas of labor, environment, and intellectual property, and establish a secure pharmaceutical supply chain.
In addition to strengthening national security, the agreement improves American competitiveness in the aerospace supply chain “through preferential access to high-quality UK aerospace components,” as stated by the White House.
During his telephonic appearance at Trump’s Oval Office event, British Prime Minister Keir Starmer praised the deal as “hugely important” for the United Kingdom’s automotive, steel, and automobile manufacturing industries, all of which have been impacted by Trump’s tariffs.
We have succeeded in doing what many have failed to do for years, thanks to this president and prime minister, Starmer remarked. “Everything about it feels very historic.”
After leaving the EU, the UK had wanted to negotiate a comprehensive free trade agreement with the US; this arrangement seems to fall well short of that goal. While Trump was in office, the two sides started talking about an agreement like this, but they never got around to finalizing it before he departed.
Nevertheless, the deal was hailed as “great news” by the Society of Motor Manufacturers and Traders, an organization that represents both domestic and international brands with operations in the United Kingdom.
The 10 percent universal tariff is supposedly kept in place in the U.S.-U.K. deal, but the U.K. is supposedly given relief from the automotive, steel, and aluminum tariffs, according to Wendy Cutler, a former negotiator in the U.S. Trade Representative’s Office and current vice president of the Asia Society Policy Institute think tank. “Japan and Korea, among other partners, will feel emboldened to demand preferential treatment under the sectoral tariff regime if this holds,” Cutler said.