President Donald Trump announced Thursday that the United States and the United Kingdom have struck a historic new trade agreement.
In the first major trade deal since Trump introduced sweeping tariffs on key international trading partners last month, the U.S. will cut tariffs on imported British cars, steel, and aluminum. In return, the UK opens its markets to billions of dollars in American agricultural products, including beef and ethanol.
Under the agreement, tariffs on 100,000 UK-made vehicles entering the U.S. will drop from Trump’s recently imposed global auto rate of 25% to just 10%, providing substantial relief to British car manufacturers.
Additionally, the U.S. will completely eliminate tariffs on British airplane parts, including Rolls-Royce engines, further cementing trade cooperation between the two allies.
President Trump described the agreement as America’s first “Fair, Open, and Reciprocal Trade Deal,” highlighting it as a model for future trade negotiations. “This deal shows that if you respect America, and bring serious proposals to the table, America is OPEN FOR BUSINESS,” Trump wrote on Truth Social.
The president celebrated the deal’s economic impact, projecting $6 billion in tariff revenue and $5 billion in new export opportunities for U.S. ranchers, farmers, and producers.
The UK also committed to dropping its ethanol tariff from 19% down to zero, granting American ethanol producers access to a lucrative new market worth approximately $700 million.
Further provisions ensure reduced regulatory hurdles and accelerated customs processing for U.S. goods entering Britain, effectively removing bureaucratic obstacles long criticized by American businesses.
British Prime Minister Keir Starmer, who joined Trump’s Oval Office announcement via speakerphone, praised the agreement as “hugely important” for British industries, emphasizing the significant benefits for car manufacturing, steel, and aluminum sectors.
Negotiations remain ongoing to finalize certain regulatory issues, such as the UK’s stance on American beef raised with hormone enhancements and chlorine-washed chicken, with U.S. Trade Representative Jamieson Greer stating these matters will be resolved based on science-based standards.
Commerce Secretary Howard Lutnick confirmed the substantial financial benefits from the deal, noting it would bring in $6 billion in tariff revenue while simultaneously expanding American exports by at least $5 billion annually.
Despite some details still pending, Trump expressed confidence the agreement would soon be finalized conclusively, delivering on promises to ensure fairer trade conditions benefiting American workers and businesses.
White House trade adviser Peter Navarro indicated this U.S.-UK agreement would serve as a “template” for upcoming trade negotiations, signaling the Trump administration’s intent to continue pushing hardline tariff strategies paired with aggressive negotiations aimed at improving America’s economic standing globally.
“This is just the start,” Trump assured supporters. “Many more to come — stay tuned!”