WASHINGTON
While US President Donald Trump has announced the first deal specific to a country since his new tariff rules were announced April 2, attention turned to details of the agreement and potential new deals.
Trump signed an executive order in early April imposing reciprocal tariffs on nations worldwide, stating that all countries will be subject to a minimum baseline tariff of 10%, with some, such as Canada, Mexico, China, and EU members, paying higher rates.
A landmark US-UK trade agreement will significantly expand US market access in the UK, unlocking a $5 billion opportunity for American farmers, ranchers and producers, the White House said Thursday.
Strengthening US competitiveness
The deal includes more than $700 million in ethanol exports and $250 million in agricultural products, such as beef, while enhancing industrial and agricultural market access for both nations.
The agreement strengthens US competitiveness by closing loopholes in the UK’s procurement market, streamlining customs procedures for US exports and establishing high-standard commitments on intellectual property, labor and environmental protections.
It also secures supply chains for the US aerospace and pharmaceutical industries by ensuring preferential access to high-quality UK aerospace components and reliable pharmaceutical supplies.
Privileges for UK
A reciprocal 10% tariff rate, announced on Liberation Day, is now in effect. Under the deal, the first 100,000 UK-made vehicles imported annually into the US will face a 10% tariff, with additional vehicles subject to a 25% rate.
Trump previously announced that the country will implement 25% tariffs for all automotive imports from all around the world.
The US will also negotiate alternative arrangements for section 232 tariffs on UK autos, steel and aluminum, recognizing the UK’s efforts to combat global steel overcapacity; this creates a new trading union for steel and aluminum.
The deal promises a “golden age” of opportunity for US exporters, leveling the playing field for American producers and setting a precedent for reciprocal trade with other global partners.
The two countries’ goods trade stood at $148 billion in 2024.
