President Donald Trump Announces Trade Deal with the United Kingdom While Keeping 10% Tariffs in Place

President Donald Trump Announces Trade Deal with the United Kingdom While Keeping 10% Tariffs in Place
Washington, May 8, 2025

Last Thursday, President Donald Trump announced a significant trade agreement with the United Kingdom. This deal could serve as a crucial step toward reducing the burden of U.S. tariffs and may be seen as a political victory for UK Prime Minister Keir Starmer.

In a speech from the Oval Office, President Trump stated that both countries would uphold "valuation and fairness" as fundamental principles of international trade. He further mentioned that this is the first official trade agreement of his second term and part of his broader strategy to use tariffs and the threat of tariffs as leverage in trade negotiations with other nations.

He noted that the full details of the deal have yet to be finalized, but it could be completed within the coming weeks. Under this agreement, the U.S. expects "billions of dollars" in increased access to the UK market, particularly for American agricultural products such as beef and ethanol.

As part of the deal, the UK will "remove or eliminate" certain non-tariff barriers that President Trump said were discriminatory against U.S. products. It will also facilitate faster customs clearance of American goods entering the UK.

Among the other terms of the agreement, the 10% tariff on imports from the UK will remain in place. However, British automakers will face a 10% tariff on the first 100,000 vehicles imported to the U.S. annually, with a 25% tariff applied to any additional vehicles.

Commerce Secretary Howard Lutnick stated that the 10% tariffs on imports from the UK are expected to generate $6 billion in revenue for the United States. Additionally, no tariffs will be imposed on Rolls-Royce engines, and a British airline will purchase $10 billion worth of Boeing aircraft.

President Trump wrote in a social media post, “The deal with the UK will be a full and comprehensive agreement that will strengthen the relationship between our two countries for many years to come.”

Meanwhile, Prime Minister Keir Starmer described the deal as a positive step toward increasing trade, protecting jobs, and creating new opportunities between the U.S. and the UK. He called it a “historic day” and said the agreement pays genuine tribute to the long-standing history of cooperation between the two nations.

The UK has pushed to remove tariffs on agricultural products, while the U.S. has sought greater access to the British market.

Although the deal will create significant opportunities for the UK, Trump’s core goal remains addressing the U.S. trade deficit with other nations through tariff enforcement.