WASHINGTON (TNND) — President Donald Trump agreed on Thursday to cut tariffs on U.K. autos, steel and aluminum as part of a planned “full” and “comprehensive” trade deal with the United Kingdom.
It is the first bilateral trade deal since Trump began slapping tariffs on U.S. trading partners in February.
Trump described the deal as “fast-tracking” American goods, adding that “the final details are being written up.”
“With this deal the UK joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade,” the president said during a news conference. “The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all products produced by our great farmers.”
U.K. Prime Minister Keir Starmer made an appearance by phone, calling it a “historic day” and stressing the importance of the two countries’ relationship as the anniversary of the World War II victory in Europe was being commemorated.
“This is going to boost trade between and across our countries. It’s going to not only protect jobs, but create jobs, opening market access, and as you say, Donald, the timing couldn’t be more apt, because not only was it 80 years ago today that victory came for Europe after and at the end of the Second World War, but of course, on that day, the U.K. and the U.S. stood together as the closest of allies,” Starmer said.
Trump predicted that America will raise $6 billion in external revenue from 10% tariffs and $5 billion in new export opportunities for “our Great Ranchers, Farmers, and Producers, and enhance the National Security of both the U.S. and the UK through the creation of an Aluminum and Steel Trading Zone, and a secure Pharmaceutical Supply Chain.”
Commerce Secretary Howard Lutnick previewed what the deal would include, mentioning a major U.K. airline would purchase $10 billion in Boeing planes.
“We’ve opened up new market access, ethanol, beef, machinery, all the agricultural products,” Lutnick said. “They’ve agreed to open their markets, and that will add $5 billion of opportunity to American exporters.”
Lutnick added that the 10% baseline for tariffs will remain on the U.K., while the British government said car export tariffs to the U.S. will drop to 10% from 27.5% for a quota of 100,000 British autos. Steel export tariffs will go from 25% to zero.
The U.S. and the U.K. have been aiming to strike a bilateral trade agreement since the British people voted in 2016 to leave the European Union, allowing the country to negotiate independently of the rest of the continent.
Negotiations started in 2020, during Trump’s first term. But the talks made little progress under President Joe Biden, a Democrat and a critic of Brexit.
Trump first teased the announcement in a post on Truth Social on Wednesday.
“Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”
Trump’s long-promised “reciprocal” tariffs went into effect in April and placed a 10% tax on imports from Britain and a 25% tariff on autos, steel and aluminum.
There are currently no new deals with America’s largest trading partners, including Canada, Mexico and China.
On Wednesday, Trump said he would not consider lowering the 145% tariffs on China.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are scheduled to meet with a high-level Chinese delegation this weekend in Switzerland
A major goal of British negotiators has been to reduce or lift the import tax on U.K. cars and steel. The U.S. is the largest destination for British cars, accounting for more than a quarter of U.K. auto exports in 2024, according to the Office for National Statistics.
Britain has also sought tariff exemptions for pharmaceuticals, while the U.S. wants greater access to the British market for agricultural products. Starmer’s government has said it won’t lower U.K. food standards to allow in chlorine-rinsed American chicken or hormone-treated beef.
The U.S. ran a $11.9 billion trade surplus in goods with the U.K. last year, according to the Census Bureau. The $68 billion in goods that the U.S. imported from the U.K. last year accounted for just 2% of all goods imported into the country.
The U.S. is much more important to the U.K. economy. It was Britain’s biggest trading partner last year, according to government statistics, though the bulk of Britain’s exports to the U.S. are services rather than goods.
A trade deal with the U.S. comes after the U.K. and India announced a trade after three years of negotiation.
“This agreement will slash tariffs on key products like whisky, cosmetics and medical devices and unlock opportunities for businesses across regions and nations of UK,” according to the Department for Business and Trade.
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Editor’s note: The Associated Press contributed to this article.
