President Donald Trump announced a tentative trade deal with the United Kingdom on Thursday, May 8. The announcement came on the 80th anniversary of World War II Victory Day in Europe.
Many details about the agreement are unknown, but both Trump and British Prime Minister Keir Starmer spoke highly of the deal they call “historic.”
“Today’s agreement with the U.K. is the first in a series of agreements on trade that my administration has been negotiating over the past four weeks,” Trump said during a phone call with Starmer while reporters listened. “With this deal, the U.K. joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade.”
Tariff changes and market access
A general 10% import tax that Trump recently imposed on goods from Britain and other countries will stay in effect.
The U.S. will reduce or eliminate some tariffs on British exports like steel, aluminum and automobiles.
According to the White House, the first 100,000 vehicles that U.K. carmakers export to the U.S. each year will have a reduced tariff of 10% under the agreement, while any vehicles beyond that quota will be taxed at the higher rate of 25%.
Boost for U.S. agriculture
In exchange, Britain has agreed to allow more American goods, especially agricultural products like beef and ethanol, into its market.
White House officials said the deal makes it easier and more profitable for American farmers and food producers to sell their products in the U.K., potentially boosting U.S. exports by $5 billion.
“In the end, it comes down to, as you say, Donald, economic security is national security,” Starmer said during the phone call. “On national security, we’ve been absolutely the closest of allies for so many years, keeping the peace through that close alliance, that friendship. Now we add to that this deal on trade and the economy.”
The United States and Britain’s trade relationship is valued at $148 billion in 2024, according to the White House.
It’s unclear when the full agreement between the two countries will be signed.
