Trump agrees to cut tariffs on British cars, steel and aluminum in planned trade deal
U.S. President Donald Trump has agreed to cut tariffs on British cars, steel and aluminum in a planned trade agreement with the UK, which will buy more U.S. beef and simplify its customs process from U.S. goods.
The symbolic resonance agreement has not been determined, but it shows that Trump is still able to negotiate with other countries in his broad tariffs, which has sparked concerns about a world economic downturn and higher inflation.
The news provided British Prime Minister Keir Starmer with a political victory and provided some verification of Trump's claim that his trade turbulent attitude may be able to rebalance the global economy on his preferred terms.
The U.S. president talks to journalists in the Oval Office, even the exquisite prints remain unchanged.
“The final details are being written,” Trump told reporters. “We will get all the conclusions in the coming weeks.”
The president said the agreement would lead to more beef and ethanol exports to the UK, which would also simplify the handling of U.S. goods through customs. Commerce Secretary Howard Lutnick said the benchmark 10% tariff will remain in place, while British officials said Trump's automatic tariffs will increase from 27.5% of the quota for 100,000 vehicles, while imports on steel and aluminum will range from 25% to zero.
Starmer owes its victory
Steamer addressed Trump by phone, highlighting the importance of relations between the two countries as the anniversary of World War II victory in Europe was commemorated.
“In order to be able to announce this huge deal … I think it's very important when I stood side by side with the UK and the US almost the same hour and 80 years ago,” Starmer said.
The planned deal is the first overview since Trump began his efforts to reconnect the global economy, which is through a massive increase in import taxes to increase domestic manufacturing. The Republican president quickly proposed tariffs after returning to the White House, targeting import taxes for steel, aluminum and cars, and traditional allies such as Britain.
Trump announced universal tariffs on April 2 before partially retreating a week later and announced that his administration would reach individual agreements with various countries in the coming months.
The United States has already made a trade surplus with the United Kingdom, so it has become easier to find common ground as Trump has specifically eliminated the annual trade deficits he said he has exploited several U.S. countries.
No new deals with Canada, Mexico and China
No new deals have been reached with the U.S.’s largest trading partners, including Canada, Mexico and China. Trump left the highest tariffs in China, sparking confrontation between the world's two largest economies.
Washington and Beijing send officials to Switzerland for the first round of trade talks this weekend.
Trump promised Thursday that “there are many other deals that are in serious negotiation stages!”
“The talks with the United States are underway and you will receive more news about me later today,” Starmer said at a defense conference in London.
Prime Minister Mark Carney called his first face-to-face meeting with U.S. President Donald Trump “widely” and “constructive”, despite Trump saying there is nothing Canada can do to eliminate our tariffs.
Since the British people voted to leave the EU in 2016, the United States and Britain have aimed to reach a bilateral trade agreement that allows the country to negotiate independently from the entire African continent. Then-Prime Minister Boris Johnson touted a future deal with the United States to inspire Brexit.
Negotiations began in 2020, during Trump’s first semester. But under Democrats and Brexit critic Joe Biden, the negotiations have made little progress. Trump resumed negotiations after returning to office in January and has intensified in recent weeks.
Reduce and increase UK car import taxes
A major goal for British negotiators is to reduce or increase import taxes on British cars and steel, which Trump has set at 25%. According to the National Office for Statistics, the United States is the largest destination for British cars, accounting for more than a quarter of UK car exports in 2024.
The UK is also seeking tariff exemptions on medicines, while the US wants to enter more of the UK agricultural products. Starmer's government said that the use of chlorine-containing American chicken or hormone-treated beef will not lower the UK food standards.
The UK government will see a deal as evidence of Steamer’s emollient approach to Trump, which avoids direct confrontation or criticism. Unlike the EU, the UK has not announced retaliatory tariffs on US goods on Trump's import taxes.
A trade agreement with the UK is symbolically important, which is a relief for British exporters. But the deal doesn't help Trump's core focus on the ongoing trade deficit, prompting him to impose import taxes on countries around the world.
According to the U.S. Census Bureau, the U.S. and the UK's commodity surplus reached $11.9 billion. The US$68 billion in goods imported from the UK last year accounted for only 2% of all goods imported into the country.
The United States is more important to the British economy. According to government statistics, it was the UK's largest trading partner last year, although most of its exports to the United States were services rather than goods.
Trump has previously said his leverage in the negotiations will be American consumers, but he seems to suggest that Britain will also start buying more American-made goods.
The trade agreement with the United States is several of the Starmer administration's attempt to strike. On Tuesday, Britain and India announced a trade agreement three years after negotiations. The UK is also trying to remove some of the barriers to trade with the EU when the UK left the group in 2020.
