On May 8, US President Donald Trump and British Prime Minister Keir Starmer jointly announced the near-finalization of a long-anticipated bilateral trade agreement between the United States and the United Kingdom.
According to the White House, the "Great Deal for America" has been planned for a while. In February, Trump promised to secure "a great trade agreement" with the UK — and he fulfilled that promise with a landmark deal that broadens market access, reduces non-tariff barriers, and creates fairer conditions for US exporters.
Starmer, joining the call via speaker phone, hailed a "really fantastic, historic day" for transatlantic growth that will expand trade, create jobs, and strengthen the economic bond between the two allies.
The agreement is set to greatly enhance US access to the UK market, opening up an estimated US$5 billion in new export opportunities for American farmers, ranchers, and manufacturers.
The US's first bilateral carve-out deal
The British government announced that under the new trade accord, US tariffs on British automobiles will be sharply reduced from 27.5% to 10%, while levies on steel and aluminum exports will be eliminated. Despite these concessions, the UK will remain subject to the Trump administration's 10 percent baseline tariff on all goods entering the American market.
According to Politico, details of the deal are still emerging. Speaking from the Oval Office, US Commerce Secretary Howard Lutnick said the agreement "opened up new market access" for a wide range of American exports, including ethanol, beef, machinery, and other agricultural goods. He also confirmed that the UK will purchase US$10 billion worth of Boeing aircraft.
In the details of the US-UK trade agreement, Britain has agreed to import 13,000 tonnes of American beef, on the condition that it meets high-quality standards while securing reciprocal access for British farmers to the US market.
Among the key provisions, a tariff on US ethanol exports to the UK has been eliminated. However, Britain's digital services tax—a charge primarily targeting large tech firms—remains in place, despite earlier expectations that it might be rolled back during negotiations.
Article edited by Jingyue Hsiao
