President Donald Trump unveiled a new trade agreement with the United Kingdom on Thursday, announcing at a news conference that his administration has struck the trade deal with the U.K., marking the first agreement the U.S. has reached since the president imposed sweeping tariffs on trading partners. Although the United Kingdom was not subjected to the direct retaliatory tariffs included in Trump’s initial announcement, it was still affected by a general 10% tariff, along with additional 25% duties targeting imported cars, steel, and aluminum.
In a post on Truth Social, Trump said: “Today is an incredible day for America as we deliver our first Fair, Open, and Reciprocal Trade Deal — Something our past Presidents never cared about. Together with our strong Ally, the United Kingdom, we have reached the first, historic Trade Deal since Liberation Day. As part of this Deal, America will raise $6 BILLION DOLLARS in External Revenue from 10% Tariffs, $5 BILLION DOLLARS 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. This Deal shows that if you respect America, and bring serious proposals to the table, America is OPEN FOR BUSINESS. Many more to come — STAY TUNED!”
Speaking from the Oval Office at the White House, Trump said “I’m thrilled to announce that we have reached a breakthrough trade deal with the United Kingdom,” noting that the agreement happened to fall on “Victory Day” in celebration of the end of World War II in Europe: “there could be no more perfect morning to reach this historic agreement. this partnership marks a mutual commitment between the U.S. and the U.K. to ensure that fairness and reciprocity are central to global trade. The agreement opens up billions of dollars in new opportunities for American exporters, particularly in the agriculture sector. It significantly expands access for U.S. products like beef and ethanol, benefiting American farmers across the board.”
United Kingdom Prime Minister Keir Starmer was put on a speaker phone for the announcement and called it a “really fantastic, historic day. This is going to boost trade between and across our countries.” Surrounded by U.S. and UK officials who helped broker the agreement, Trump promised that their efforts would provide billions of dollars in access for U.S. agricultural products: “They’re opening up their country .. Their country is a little closed and we appreciate it.” The President highlighted that British customs procedures will now expedite the processing of American goods, allowing exports to move through more efficiently. He noted that the final version of the agreement is still being finalized and is expected to be completed in the coming weeks.
Under the deal, the U.K. will reduce non-tariff barriers to U.S. products, including beef, ethanol fuel, machinery and chemicals. The 10% baseline tariff that the U.S. has placed on dozens of countries will remain in place, while duties on British vehicles will fall from 25% to 10% to match that baseline. President Trump said he also plans to negotiate a trade deal with the European Union and is open to reducing 145% tariffs on Chinese goods.
Editorial credit: Joshua Sukoff / Shutterstock.com
