Car, ethanol and steel tariff cuts as part of US-UK trade deal
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More news: In a statement to media, the UK government set out some of the details of the trade deal. It said car export tariffs will fall from 27.5% to 10% for up to 100,000 vehicles, nearly the total UK export volume last year.
Tariffs on UK steel have been eliminated, down from 25%, and both countries agreed to reciprocal beef market access, including a UK tariff-free quota of 13,000 metric tonnes. The UK will also remove its ethanol tariff, cutting it to zero.
Work continues on sectors such as pharmaceuticals and remaining reciprocal tariffs. The UK Digital Services Tax remains unchanged, but a digital trade deal will aim to reduce paperwork for UK firms exporting to the US.
US officials said the deal includes a new “trading zone” for steel and aluminium and a pharmaceutical supply chain.
US Commerce Secretary Howard Lutnick said the UK will announce US$10 billion in aircraft purchases, sending Boeing shares higher. He did not say what airline that deal relates to.
What they said: Keir Starmer posted on social media: “Today I've secured a deal with the US that boosts British businesses and saves thousands of British jobs. I promised to protect British car makers and save our steel. This deal delivers on that promise. And British workers, families, and firms will feel the benefit.”
Trump announces ‘breakthrough’ UK trade deal, official calls it ‘agreement in concept’
The news: President Donald Trump announced what he said was a “breakthrough” trade deal with the United Kingdom, calling it a “full and comprehensive” agreement that would be the first of many global deals.
The numbers: The announcement follows four weeks of talks and retains a 10% “universal” tariff, while opening new market access for US products including beef, ethanol and machinery.
Commerce Secretary Howard Lutnick said the deal adds USD5 billion in opportunity for American exporters and generates USD6 billion in tariff revenue. He said the deal included tariff-free access for Rolls Roys plane parts.
What they said: Trump said the UK will join a new “economic security alignment” with the US and said the details would be finalised in the coming weeks.
Prime Minister Keir Starmer, speaking by phone from a UK car factory, called it a “fantastic, historic day” and said it was “hugely important” for sectors like car manufacturing, steel and aluminium.
Hours before the announcement, US Agriculture Secretary Brooke Rollins, told Fox Business the deal was “an agreement in concept.”
“There's a lot of details to be worked out,” she said. At the Oval Office, she said the deal was going to “exponentially increase our beef exports.”
Lutnick said: "We've opened up new market access, ethanol, beef machinery, all the agricultural products. They've agreed to open their markets. And that will add USD5 billion dollars of opportunity to American exporters."
"We still have our 10% tariff on which will produce USD6 billion of revenue for the United States," he added.
The sources: The New York Times , Blomberg, Reuters
