President Donald Trump announced a significant trade deal with the United Kingdom on May 8, 2025, in a ceremony at the Oval Office. This agreement aims to reduce trade barriers between the two nations, marking a key achievement for Trump in his trade policy efforts.
The deal is expected to enhance U.S. access to the British market, which is the sixth-largest economy globally. Trump highlighted that American exports worth billions will benefit from this arrangement. U.K. Prime Minister Keir Starmer expressed his satisfaction with the agreement during a phone call with Trump, emphasizing its importance for both countries.
While the final details are still being finalized, Trump confirmed that some tariffs on British imports will remain. He noted that the deal is designed to strengthen both nations’ industrial sectors, particularly in the steel industry, which he described as a crucial component of the agreement.
In a social media post, Trump shared a chart indicating that tariffs on U.S. goods exported to Britain will decrease to 1.8%. In contrast, the 10% tariffs on British goods entering the U.S. will stay in place. He cautioned that this 10% rate should not set a precedent for future trade negotiations with other countries.
During a press briefing, Trump and Commerce Secretary Howard Lutnick clarified that the focus of the trade deal is strictly economic. When asked about provisions for free speech and religious freedom, they reiterated that these issues are not part of the agreement.
Lutnick also mentioned that the U.K. will be allowed to export up to 100,000 vehicles to the U.S. under the 10% tariff. This arrangement aims to maintain U.K. access to the American market while safeguarding American jobs. Additionally, American agricultural products, including ethanol, beef, and machinery, will see increased market opportunities in the U.K. Agriculture Secretary Brooke Rollins stated that the deal would significantly boost U.S. beef exports to Britain.
The agreement also includes provisions for the U.K. to export Rolls-Royce engines and airplane parts to the U.S. without tariffs. In return, Britain is set to purchase $10 billion worth of Boeing airplanes from the United States.
Starmer commended Trump and his trade team for their efforts, stating that the deal will not only protect existing jobs but also create new ones by opening up market access.
This trade deal represents a crucial step for the Trump administration as it seeks to establish new trade agreements globally following the recent rollout of the "Liberation Day" tariffs.