United States and United Kingdom Reach Trade Agreement to Ease Tariffs
The United States and the United Kingdom have reached a trade agreement under which Washington has reduced tariffs on a specific number of British-origin automobiles and allows the importation of a percentage of British steel and aluminum tariff-free.
The announcement, made this Thursday, provides relief for major British industries facing some of the new tariffs introduced by President Donald Trump since he took office in January.
However, the U.S. government maintains a 10% tariff on most products originating from the United Kingdom.
Analysts noted that the new conditions do not appear to significantly alter the terms of trade between the two countries as they were before Trump’s tariff offensive in recent weeks.
No formal agreement was signed on Thursday, and neither Washington nor London provided many details.
However, the leaders of both countries celebrated the new understanding.
Speaking from a Jaguar Land Rover factory in the West Midlands, British Prime Minister Keir Starmer described the agreement as a “fantastic platform.”
At the White House, Trump called it a “great deal” and dismissed critics who accused him of exaggerating its importance.
“It’s a deal we’ve maximized and one we’re going to expand,” the U.S. president asserted.
He stated that this was the first of many agreements to come.
What Does the Agreement Include?
Both parties said the United States agreed to reduce the import tax on automobiles—previously increased by Trump to 25% last month—to 10% on approximately 100,000 vehicles per year.
This will benefit luxury car manufacturers such as Jaguar Land Rover and Rolls-Royce but could limit growth in the coming years, as it roughly matches the UK’s exports from last year.
Tariffs on steel and aluminum, which Trump had also raised to 25% earlier this year, have also been reduced, according to the Prime Minister’s Office.
