Trump announces trade deal with UK, cuts tariffs on some goods
Pres. Trump makes major trade announcement
President Donald Trump announced a trade agreement with the United Kingdom on Thursday, noting that it will be "the first of many." Both Trump and British PM Keir Starmer said final details are still being hashed out. Trump said, however, that the UK agreed to fast track American products through its customs process. The Trump administration says it is in active negotiations with India, the UK, South Korea and Japan.
WASHINGTON - President Donald Trump on Thursday announced a trade deal between the United States and Britain, the first announced since his sweeping tariffs were implemented.
Trump said on Truth Social that the deal will be a "full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come." The president talked up the framework to reporters in the Oval Office, although the fine print remains in flux despite his prior statements that a full agreement had been signed.
Here’s what to know:
US-UK trade deal
What we know:
The deal affirms that "reciprocity and fairness is a vital principle of international trade," Trump said from the Oval Office. It increases access for U.S. beef, ethanol, and other agricultural products, Trump added.
Under the framework agreement, the United Kingdom is to buy more American beef and ethanol and streamline its customs process for goods from the United States. But Trump's baseline 10% tariffs against British goods are to stay in place, and the Republican president suggested that even higher import taxes would be charged on other countries trying to reach deals with the U.S.
It also fast tracks American goods through the U.K.’s customs process, Trump said. He cautioned that final details will come in the "coming weeks."
"They’re opening up the country," Trump said. "The country is a little closed."
U.K. officials said that Trump's auto tariffs would go from 27.5% to 10% on a quota of 100,000 vehicles and the import taxes on steel and aluminum would go from 25% to zero. Starmer said Britain would preserve its health and safety standards on food products.
The U.K. government also said it would also reduce tariffs on 2,500 U.S. products such as olive oil, wine and sports equipment, bringing down the average tariff rate 1.8%.
What we don't know:
More specifics of the deal have not yet been released. Trump cautioned that final details will come in the "coming weeks."
Trade agreements are notoriously complex and can be time-consuming to finalize. However, Trump has been racing to reach deals as he tries to fulfill his promises since launching his tariff agenda last month.
What they're saying:
UK Prime Minister Keir Starmer, speaking over the phone to Trump while reporters listened in, stressed the importance of the relationship between the two countries as the anniversary of the World War II victory in Europe was being commemorated.
"To be able to announce this great deal, on the same day 80 years forward, almost at the same hour," Startmer said, "I think is incredibly important and makes this truly historic."
"In the coming weeks, we’ll have it all very conclusive," Trump said.
Big picture view:
This is the first bilateral trade deal announced since Trump began slapping tariffs on U.S. trading partners. The British government will see a deal as a vindication of Starmer’s softening approach to Trump, which has avoided direct confrontation or criticism. Unlike the European Union, Britain did not announce retaliatory tariffs on U.S. goods in response to Trump’s import taxes.
FILE - U.S. President Donald Trump (R) and British Prime Minister Keir Starmer shake hands during a joint press conference in the East Room of the White House in Washington, DC, on Feb. 27, 2025. (Photo by CARL COURT/POOL/AFP via Getty Images)
A trade deal with the United Kingdom will be symbolically important, and a relief for British exporters. But an agreement would do little to address Trump’s core concern about persistent trade deficits that prompted him to impose import taxes on countries around the world.
Dig deeper:
The agreement is likely to fall short of a full free trade deal, but will provide tariff relief to certain sectors. Trump has imposed a 10% tax on imports from Britain, as well as 25% tariffs on autos, steel and aluminum on the premise that doing so would foster more factory jobs domestically.
A major goal of British negotiators has been to reduce or lift the import tax on U.K. cars and steel. The U.S. is the largest destination for British cars, accounting for more than a quarter of U.K. auto exports in 2024, according to the Office for National Statistics.
Britain has also sought tariff exemptions for pharmaceuticals, while the U.S. wants greater access to the British market for agriculture products. Starmer’s government has said it won’t lower U.K. food standards to allow in chlorine-rinsed American chicken or hormone-treated beef.
By the numbers:
The U.S. ran a $11.9 billion trade surplus in goods with the U.K. last year, according to the Census Bureau. The $68 billion in goods that the U.S. imported from the U.K. last year accounted for just 2% of all goods imported into the country.
The U.S. is much more important to the U.K. economy. It was Britain's biggest trading partner last year, according to government statistics, though the bulk of Britain’s exports to the U.S. are services rather than goods.
The Source: This story was reported based on information shared by President Donald Trump on May 8, 2025, via Truth Social and the White House. It was reported from Cincinnati, and the Associated Press contributed.