The United Kingdom has become the first country to reach a trade agreement with the United States since President Donald Trump reintroduced sweeping tariffs last month. The deal, described by Prime Minister Keir Starmer as “jobs saved, jobs won”, eliminates or reduces US tariffs on a number of key British exports, including cars, steel, aluminium and beef.
Under the agreement, tariffs on up to 100,000 UK-manufactured cars exported to the US annually will be cut from 27.5% to 10%. Meanwhile, the 25% tariffs previously applied to British steel and aluminium exports will be removed entirely, providing vital relief for UK steelmakers who had warned of a potential collapse of the sector.
The deal also provides reciprocal access for beef exports, with UK farmers granted a quota of 13,000 metric tonnes for the US market. The UK government emphasised that there would be no relaxation of food safety standards, with imports of hormone-treated beef and chlorinated chicken remaining illegal.
“This is a great deal for America,” President Trump said in a White House statement. “It includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all of the products produced by our great farmers.”
In return, the UK has agreed to remove tariffs on US ethanol imports and to reduce non-tariff barriers in areas such as procurement and customs. The US aerospace sector will also benefit from preferential access to high-quality UK components, while both countries committed to deepening cooperation in technology, pharmaceuticals and advanced manufacturing.
While hailed by both governments as a breakthrough, the deal falls short of a comprehensive free trade agreement. A 10% baseline tariff on most UK goods entering the US remains in place, and discussions continue on areas such as digital trade and pharmaceuticals. The UK’s digital services tax, which the US administration has repeatedly criticised, remains unchanged for now.
According to the UK’s Business and Trade Secretary, Jonathan Reynolds, the agreement is “only the beginning”.
“We look forward to strengthening our trading relationship with the US through a wider economic deal,” he added.
Industry reaction was generally positive. Adrian Mardell, CEO of Jaguar Land Rover, welcomed the announcement, noting that the car industry supports 250,000 jobs in the UK and benefits from reduced export costs and greater certainty.
Logistics sector welcomes clarity but calls for detail
The logistics industry also responded to the announcement, stressing the importance of implementation. Nichola Mallon, Head of Trade and Devolved Policy at Logistics UK, said the agreement was a step forward but urged caution.
“The logistics sector will be intrinsic to delivering the boost to trade that has been promised from the US/ UK trade deal – our members will welcome the fact that a deal has been negotiated,” she said. “We will be scrutinising the detail of the agreement in the coming weeks to identify the opportunities for growth that the deal should bring.”
Mallon added that businesses have been “unsettled by the lack of clarity and consistency provided for traders since tariffs were announced”, and expressed hope that the new agreement would “lead to a period of greater stability.”
Ongoing criticism and next steps
However, critics on both sides of the Atlantic questioned the scope and fairness of the agreement. Conservative leader Kemi Badenoch said the UK had been “shafted” by the deal, arguing that British tariff cuts were not matched by equivalent US concessions. Meanwhile, a trade association representing major US automakers criticised the preferential treatment for UK car exports over vehicles made in Mexico and Canada under the USMCA.
The deal was concluded under pressure following Trump’s declaration of 2 April as “Liberation Day”, when he imposed a new 10% tariff on most imports into the US. UK officials described the agreement as a crucial step in mitigating the economic fallout from those measures.
With negotiations ongoing and further sectoral deals expected in the coming months, both sides have signalled that this agreement is a foundation rather than a final destination.
“This is jobs saved, jobs won – but not job done,” Starmer said.
