WASHINGTON (AP) — The Trump administration has revealed a trade agreement with the United Kingdom, emphasizing its significance but lacking in specific details on its impact. The deal will grant American beef, ethanol, and other agricultural products access to the British market, as well as enhance the ability for British cars and steel to reach U.S. consumers. While some see this as validation of President Donald Trump’s tariff strategy, economists remain reserved, pointing out that the U.K. is not a major enough trade partner to notably impact the U.S. economy.
Many experts view the agreement as more symbolic than economically substantial. Beata Caranci, chief economist at TD Economics, described it as a means of addressing certain issues rather than resolving the trade war entirely. President Trump mentioned that further specifics will follow in the “coming weeks.” Despite this, the administration hails the deal as “historic” and “a great deal for America.”
U.K. Prime Minister Keir Starmer has highlighted the deal’s role in safeguarding auto jobs and underscoring the bilateral relationship. The U.K. ranks as the fourth largest export market for the U.S., accounting for 4.5% of U.S. exports this year.
Key points of the agreement include the U.S. maintaining a 10% duty on most U.K. imports, a reduction of U.S. tariffs on British car imports to 10%, and duty-free entry for U.K. steel into the U.S. The pact also involves expanded market access for beef and ethanol trade between the two nations.
Notably absent are provisions regarding U.S. access to the U.K.’s national health service and changes to the U.K.’s digital services tax impacting American tech companies.
Google, along with Meta, the parent company of Facebook, have been under scrutiny from Trump due to tax criticisms. Despite this, the U.K. government has announced that negotiations for a digital trade deal between the two countries are underway. Trump has expressed dissatisfaction with the deal, claiming that the U.K. will not be exempt from the proposed 100% tariffs on foreign-made films. A British trade official mentioned that discussions are still ongoing in various sectors including pharmaceuticals, semiconductors, critical minerals, copper, and lumber.
