U.S. and U.K. Strike Trade Deal Following Trump Tariffs

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Ma 8, 2025
By: Ashley J. Bodden

Early Thursday morning, the United States and the United Kingdom announced their plans for the first bilateral agreement since the Trump administration imposed tariffs on U.S. trading partners. The final details of the agreement are still being written up and should be conclusive in the coming weeks. Thus, the terms discussed below could change in the course of the final negotiations.

This deal comes after Trump imposed a 10 percent “reciprocal” tariffs on the UK on April 2,2025, as well as subjecting other British exports to a variety of tariff measures. While the U.K. initially proposed retaliatory tariff U.S. goods in response to the reciprocal tariff on, the new deal appears to have left the 10% tariff in place with no U.K. tariffs in response.

As described by the parties, the trade agreement will include a cut in tariffs on U.K. car imports from 27.5 percent to 10 percent, up to the first 100,000 cars. In 2024, the U.K. exported 92,000 cars to the United States. U.K steel and aluminum exports will enter the United States under an “alternative arrangement” under the Section 232 regime. The U.S. will also lift all duties on airplane engines and other aerospace parts from U.K’s Rolls Royce.

In exchange, the U.K will eliminate tariffs on ethanol from the U.S., up to 1.4 billion liters, beef and machinery. In addition, a U.K airline will purchase $10 billion in planes from Boeing, the U.K. will reduce its average tariff on U.S. goods to 1.8 percent, and “reduce or eliminate” non-tariff barriers on U.S. exports. Under the agreement, the U.K will also streamline its customs process for U.S. goods.

The agreement is seen as a political victory for U.K. Prime Minister Keir Starmer, as it “delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel.” U.K. Prime Minister Starmer also stressed the importance of the relationship between the two nations.

The U.S.-U.K. agreement will leave some details out to be worked out at a later date, leaving the agreement open for negotiation of a larger deal in the coming future.

If you have any questions or would like more information about U.S.-U.K trade deal, contact an attorney at Barnes, Richardson & Colburn LLP.