On May 8, 2025, President Donald Trump and UK Prime Minister Keir Starmer announced a new U.S.–UK trade framework, marking a significant shift in transatlantic trade policy. The leaders outlined mutual commitments to improve market access, reduce trade barriers, and protect strategic industries.
“The deal 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.”
President Donald Trump
FRAMEWORK EXPANDS U.S. EXPORT OPPORTUNITIES FOR AGRICULTURE, AEROSPACE, AND PHARMA
The new trade arrangement opens the door for more than $5 billion in new U.S. exports, with major gains in agricultural products such as beef and ethanol. It also includes preferential access for U.S. aerospace manufacturers and establishes secure supply chains for pharmaceutical products.
“This historic deal delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel.”
Prime Minister Keir Starmer
U.S.-UK TRADE COMMITMENT ADDRESSES VEHICLES, STEEL, AND ALUMINUM
Under the U.S.-UK trade framework, the U.S. will maintain a 10% reciprocal tariff on UK vehicle imports for the first 100,000 units annually. Volumes above that threshold will remain subject to a 25% tariff under Section 232. Negotiations are also underway for an alternative approach to the current Section 232 tariffs on steel and aluminum.
NEXT STEPS: CUSTOMS, PROCUREMENT, AND COMPLIANCE ALIGNMENT
In addition to tariffs, this new U.S.-UK trade understanding calls for streamlined customs procedures, expanded public procurement access, and new labor and environmental commitments. Full implementation details are expected in the months ahead.
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