Trump and Starmer Seal Landmark Trade Pact, Rebooting U.S.–U.K. Economic Alliance

 

Washington, D.C. – May 8, 2025

The U.S. and U.K. unveil a sweeping new trade deal slashing tariffs and boosting transatlantic commerce, marking a pivotal moment in post-Brexit economic diplomacy.

President Donald Trump and U.K. Prime Minister Keir Starmer have unveiled a significant bilateral trade agreement aimed at strengthening economic ties between the two nations. Announced during a joint media event, the deal is described as "full and comprehensive," marking the first major trade pact since the U.S. implemented sweeping global tariffs in April.Al Jazeera+4DIE WELT+4The Guardian+4

Key Provisions of the Agreement:

• Tariff Reductions: The U.S. will lower tariffs on British automobiles, steel, and aluminum. Specifically, up to 100,000 British cars annually will face a reduced tariff of 10%, down from the previous 27.5%. Tariffs on U.K. steel and aluminum exports to the U.S. will be eliminated, dropping from 25% to zero. AP News+1The Guardian+1

• Agricultural and Industrial Access: The U.K. has agreed to increase imports of American agricultural products, including beef and ethanol. Additionally, both countries have committed to reducing non-tariff barriers, expediting customs processes, and enhancing market access for sectors such as chemicals, machinery, and technology. New York Post

• Digital Services Tax: Discussions are ongoing regarding the U.K.'s Digital Services Tax, with considerations to adjust the levy to prevent potential trade disputes. Wikipedia+1Wikipedia+1

Statements from Leaders:

President Trump hailed the agreement as a milestone, stating, "Today is an incredible day for America as we deliver our first Fair, Open, and Reciprocal Trade Deal." Fox Business

Prime Minister Starmer emphasized the deal's significance, calling it a "fantastic, historic day" and highlighting its importance for sectors like car manufacturing, steel, and aluminum. AP News+3The Guardian+3Reuters+3

Next Steps:

While the agreement outlines major components, final details are still being negotiated. Both nations have expressed optimism about the deal's potential to boost trade and create jobs. Further discussions are expected to finalize the terms and address remaining issues.Fox Business

For more information, you can read the full article here: AP News