On Thursday, President Donald Trump and U.K. Prime Minister Keir Starmer revealed a landmark trade agreement between the U.S. and the United Kingdom. Trump emphasized that the deal would expand American exports by billions of dollars, particularly in sectors such as beef, ethanol, and other agricultural products.
Speaking from the Oval Office, the president stated that while the specifics of the agreement are still being finalized, the U.K. has pledged to “eliminate numerous non-tariff barriers.” Trump described the deal as a “great deal for both countries,” highlighting its mutual benefits.
U.S. Commerce Secretary Howard Lutnick further explained that the trade deal is expected to generate $5 billion in new opportunities for U.S. exports, as the U.K. identified products it previously sourced from other nations that it could now procure from the U.S.
Additionally, Trump pointed out that the agreement would incorporate a “historic” economic security element. He also noted that the U.K. would expedite the processing of American goods through its customs procedures.
The U.K. will still be subject to Trump’s 10 percent baseline tariff, which he has applied to all countries. Lutnick revealed that the U.S. has agreed to reduce its 25 percent tariff on British car imports to 10 percent. Additionally, Rolls Royce engines and plane components will be imported without tariffs, while the U.K. is set to purchase $10 billion worth of Boeing airplanes. Tariffs on British steel exports will also drop from 25 percent to zero.
“This is a really fantastic historic day in which we can announce this deal between our two great countries,” Starmer stated during a speakerphone call with Trump. “This is going to boost trade between and across our countries, it’s going to not only protect jobs but create jobs, opening market access,” he added.
Both leaders acknowledged the long-standing efforts by both nations to secure a trade agreement. Starmer remarked, “With this president and this prime minister, we’ve managed to achieve what many people have tried to achieve for many years.”
National Review reports that the U.K. ranked as the United States’ eleventh largest trading partner in the first quarter of the year. In 2024, the U.S. exported $80 billion worth of goods to Britain, including machinery, airplanes, natural gas, and crude oil. In return, the U.S. imported $68 billion of cars, pharmaceuticals, and other products from the U.K.
Earlier Thursday, Trump took to social media to announce the “full and comprehensive” agreement, declaring it would “cement the relationship between the United States and the United Kingdom for many years to come.” He also teased that “many other deals, which are in serious stages of negotiation, [are] to follow!”
During his Oval Office remarks, Trump stated that his administration is “very close” to finalizing agreements with several other countries. He added that the U.S. is also in negotiations with the European Union. “And they very much want to make a deal,” Trump said, noting, “We’ll be dealing with them. We are dealing with them currently.”
