The U.S. and U.K. sealed a bilateral trade deal Wednesday, cutting tariffs, boosting industrial ties and securing billions in new market access.
The announcement came during a White House press conference where President Donald Trump unveiled the agreement alongside UK Prime Minister Keir Starmer.
Among the highlights: The U.S. will slash tariffs on UK-made cars, while the U.K. will reduce tariffs on ethanol imported from the U.S. to zero.
Tariffs Slashed On Autos, Beef and Steel
Among the most consequential elements of the pact: the U.S. will cut tariffs on UK-made cars from 25% to 10%, granting British automakers a quota of 100,000 vehicles annually. In return, the UK will eliminate tariffs on American cars like those from General Motors Co. (NYSE:GM) and Ford Motor Co. (NYSE:F), and fast-track US exports through customs.
The auto provision alone could support tens of thousands of jobs across the UK manufacturing sector.
"The UK is the fourth largest export market for the U.S." said US Commerce Secretary Howard Lutnick.
Lutnick indicated that the US-UK agreement could add over $5 billion in new opportunities for American exporters — particularly in agriculture and heavy industry — while protecting domestic jobs. "This is what happens when you have a dealmaker in the room," he said. "What would've taken years took 45 days."
Additionally, U.S. tariffs on UK steel — previously set at 25% — will be reduced.
The U.S. and UK agreed to reduce tariffs on beef imports and exports to near-zero levels.
Currently, U.S. tariffs on British beef range from 4% to 26%, while the U.K. imposes up to 20% on American beef. Those barriers now come down dramatically. Trump described it as "billions of dollars of increased market access for American exports."
Industrial And Aerospace Wins
Beyond cars and cattle, the deal unlocks new opportunities in industrial goods, machinery, chemicals and aerospace.
Rolls-Royce Holdings will now be able to export jet engines to Boeing Co. (NYSE:BA) tariff-free. In return, a major UK airline is expected to announce a $10 billion purchase of Boeing aircraft later this week.
Shares of Boeing and Rolls Royce rallied over 2% on the news.
Trump praised the agreement as a new model for international commerce, saying it underscores "reciprocity and fairness as vital principles of global trade."
Starmer called it a "fantastic, historic day.” The deal, finalized almost 80 years to the hour after Victory in Europe Day, aims to preserve and create jobs on both sides of the Atlantic.
"Economic security is national security," Starmer said. "Now we take this into the territory of trade and the economy — and it builds on our unparalleled intelligence, defense and diplomatic partnership."
The trade pact also includes provisions for stronger export controls, supply chain protections, and collaborative standards for strategic industries — particularly steel, pharmaceuticals and aviation.
First Deal After Tariff Pause, More Coming Soon
This UK agreement marks the first breakthrough since Trump paused his sweeping global tariffs for a 90-day negotiation window in early April.
"We are very close to more deals," he said, noting that Treasury Secretary Scott Bessent is heading to Switzerland to negotiate with China.
"They want to make a deal," Trump said, also teasing progress on trade talks with the European Union.
“We’d like to see China opened up so we can compete in China,” Trump said.
The President also indicated that the 10% baseline tariff applied to the UK won’t be a template for future deals.
“That’s a low number, they made a good deal. Many [countries] will be much higher [tariffs] because they have massive trade surpluses,” he said.
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