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American Focus > Blog > The White House > U.S.-UK Reach Historic Trade Deal – The White House
The White House

U.S.-UK Reach Historic Trade Deal – The White House

Last updated: May 8, 2025 9:30 am
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U.S.-UK Reach Historic Trade Deal – The White House
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PAVING A NEW PATH FOR A SPECIAL RELATIONSHIP: On the 80th anniversary of Victory Day in World War II, President Donald J. Trump and Prime Minister Keir Starmer revealed a groundbreaking trade agreement that opens the floodgates for American businesses into UK markets while enhancing U.S. national security. This deal, they claim, is a significant win for America.

  • President Trump stated, “This deal unlocks billions in market access for American exports, particularly in agriculture, allowing for a dramatic increase in the import of American beef, ethanol, and an array of products from our exceptional farmers.”
    • “The UK is set to diminish or abolish various non-tariff barriers that have unjustly favored local products over American offerings.”

    • “This is proving to be a fantastic arrangement for both nations.”

  • Prime Minister Starmer added, “This agreement will not only enhance trade between our two nations but will also safeguard existing jobs while generating new ones, broadening market access.”
  • The trade deal is projected to broaden U.S. market access in the UK, potentially creating a $5 billion opportunity in new exports for American farmers, ranchers, and producers.
    • This encompasses over $700 million in ethanol exports and $250 million in various agricultural products, including beef.
    • It obligates both nations to collaborate in enhancing industrial and agricultural market access.
    • It aims to close loopholes and boost the competitiveness of U.S. firms in the UK’s procurement landscape.
    • It ensures smoother customs processes for U.S. exports.
    • It establishes high-standard commitments in intellectual property, labor, and environmental sectors.
    • It enhances the competitiveness and secures the supply chains for U.S. aerospace manufacturers by providing preferential access to top-quality UK aerospace components.

    • It also creates a secure supply chain for pharmaceutical products.

  • The previously established reciprocal tariff rate of 10%, announced on Liberation Day, remains in effect.
  • The United States has agreed to a modified arrangement regarding Section 232 tariffs on UK automobiles.

    • As per the agreement, the first 100,000 vehicles imported annually into the U.S. from UK manufacturers will incur the reciprocal tariff rate of 10%, while any additional vehicles in that year will be subject to a higher rate of 25%.

  • The United States acknowledges the economic security measures implemented by the UK to address global steel overcapacity and will negotiate an alternative arrangement concerning the Section 232 tariffs on steel and aluminum.

    • This agreement establishes a new trading union for steel and aluminum.

  • This U.S.-UK trade agreement is heralded as the dawn of a prosperous new era for U.S. exporters, leveling the playing field for American producers.
  • Today’s actions also set a precedent for other trading partners, encouraging reciprocal trade with the United States.

A STRATEGY TO ENHANCE ECONOMIC SECURITY: President Trump is committed to advancing the interests of the American populace by improving market access for U.S. exporters and reducing both tariff and non-tariff barriers, thus safeguarding our economic and national security.

  • On April 18, President Trump spoke with Prime Minister Starmer to discuss the bilateral trade relationship.
  • In 2024, the total goods trade between the U.S. and the UK was estimated at $148 billion.
  • The UK’s average agricultural tariff stands at 9.2%, compared to the U.S.’s average of 5% prior to April 2.
  • The UK imposes certain tariff and non-tariff barriers that hinder market access, creating an uneven playing field for American workers and businesses.

    • For instance, tariffs on meat, poultry, and dairy products can exceed 125%, coupled with non-science-based standards that negatively impact U.S. exports.

  • On April 2, 2025, designated as Liberation Day, President Trump instituted a 10% tariff across all countries to address unfair trade practices contributing to America’s trade deficit and imbalances, aiming to better protect American workers and national security.

A SIGNIFICANT STEP TOWARD AN AMERICA-FIRST TRADE POLICY: From the very beginning, President Trump has challenged the notion that American workers and businesses should accept unfair trade practices that have historically disadvantaged them and fueled the nation’s trade deficit.

  • By reversing these unfavorable conditions and addressing the lack of reciprocity in trade relationships, we can embark on a new Golden Age and truly Make America Great Again.
  • President Trump continues to prioritize the interests of the American people, further enhancing market access for U.S. exporters while reducing tariff and non-tariff barriers.
  • The Economic Prosperity Deal with the UK stands as a pivotal advancement in a special relationship aimed at fostering reciprocal trade with a crucial ally and partner.

See also  Restoring Truth and Sanity to American History – The White House
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