United States President Donald Trump and British Prime Minister Keir Starmer on Thursday announced striking a major trade deal, marking a first such agreement since the global tariffs came into effect. The deal includes the reduction of import taxes on some cars and also allows the influx of some steel and aluminum into the country tariff-free.
While briefing the media at the White House, Donald Trump asserted, "This morning I am thrilled to announce that we have reached a trade deal with the UK. Today is the Victory Day for World War II. We won together exactly 80 years ago, so there could be no more perfect morning to reach this historic agreement."
What is the new trade deal?
The United States claimed that the trade agreement would aid in boosting American exports along with fetching $6 billion in foreign revenue. Trump has also agreed to reduce the tariff to 10 percent for 1,00,000 cars each year. Any additional imports would be levied with a 27.5 percent tariff. The export of beef and ethanol from the UK will also receive a boost while also simplifying the processing of US goods through customs.
The US had earlier set tariffs on cars and steel at 25 percent. The US serves as the largest destination of British cars constituting nearly a quarter of its foreign market. The UK will also retain the digital tax which was a major concern for US technology companies.
The UK also lowered its tariffs from 5.1 percent to 1.8 percent seeking to achieve bilateral trade of $120 billion by 2030.
The US had a $11.9 billion trade surplus with the United Kingdom in 2024.
