On the 8th (local time), the United States and the United Kingdom reached a trade agreement. The Donald Trump administration decided to reduce the tariff on British cars from the existing 25% to 10% for up to 100,000 units per year. Additionally, the 25% tariff on British steel and aluminum will be abolished. In exchange, the United Kingdom will open its markets to ethanol, beef, agricultural products, and machinery for the United States.
However, the United States decided to maintain a 10% basic mutual tariff on the United Kingdom.
On that day, President Trump publicly spoke on the phone with British Prime Minister Keir Starmer at the White House, noting, "We have reached a groundbreaking trade agreement with the United Kingdom," as he announced the details of the U.S.-U.K. trade agreement.
President Trump stated via social media (SNS), "For the first time, we have reached a fair, open, and mutually beneficial agreement that previous presidents never cared about. Today is a tremendous day for the United States."
He added, "This agreement shows that if other countries respect the United States and bring serious proposals to the table, the U.S. is open for business," stating that "more agreements will follow."
U.S. Secretary of Commerce Howard Lutnick stated that, according to this agreement, the United Kingdom will open its markets to ethanol, beef, machinery, and all agricultural products.
Secretary Lutnick remarked, "This will provide an additional $5 billion opportunity for U.S. exporters."
Secretary Lutnick also stated that the 10% basic mutual tariff on the United Kingdom will continue to be maintained, which is expected to generate $6 billion in tax revenue. Additionally, Lutnick noted that the United Kingdom has agreed to purchase Boeing aircraft valued at $10 billion.
The U.S. agreed to impose a 10% tariff on British vehicles instead of a 25% tariff for up to 100,000 units per year.
The British government also announced that the U.S. government has decided to abolish the 25% tariff on British steel and aluminum.
This is the first time the Trump administration has announced a trade agreement following negotiations with individual countries since entering the global tariff war.