President Trump announced his first deal since launching a global trade war Thursday, unveiling a limited pact with the United Kingdom that would lower barriers on some goods such as automobiles and agriculture while leaving many details yet to be worked out.
It’s a “tremendous trade deal for both countries,” Trump said Thursday in the Oval Office. “This is a fantastic, historic day,” added UK Prime Minister Keir Starmer who joined the event over the phone.
“The final details are being written up” and will be concluded in the coming weeks, Trump added.
One key change not in the offing is any adjustment to the 10% baseline tariffs that Trump imposed on nearly every country in the world. Those duties are set to stay in place in this deal, with Trump reiterating Thursday that he views 10% as the minimum and other countries will face far higher duties.
President Donald Trump makes a trade announcement in the Oval office. (JIM WATSON/AFP via Getty Images) · JIM WATSON via Getty Images
The core of the deal is essentially a trade where the UK will get a lowering of duties on key sectors. Most in focus are steel — US duties on UK-made steel will drop from 25% to 0% — and car exports where duties are set be reduced from 27.5% to 10%, according to a release from the UK.
“We started at 10% and we ended at 10%,” noted Commerce Secretary Howard Lutnick during the event
In return, Prime Minister Starmer is offering promises to open the UK markets more to things like US autos, ethanol, machinery, and agricultural products as well as unspecified so far concessions on so-called digital service taxes that hit US tech companies.
In a Truth Social post, Trump touted “unprecedented” new access to the UK market and claimed that tariffs imposed by the UK would drop from 5.1% to 1.8%.
The deal also includes provisions, Trump said, around the fast tracking of exports as well as new economic security measures. Secretary Lutnick added the deal is also also set to include new purchases of British airport engines by Boeing.
Yet the unanswered questions were abundant.
In one example, Trump focused heavily on US beef exports in his opening remarks but then acknowledged that the UK wouldn’t be changing their beef standards which have been a far bigger hangup to trade than other issues like tariffs.
“I think they’ll take what they want,” Trump said of beef exports.
“There will be no weakening of UK food standards on imports,” added the release from London with the deal described as new reciprocal market access including a new tariff free quota for UK farmers.
“Work will continue on the remaining sectors — such as pharmaceuticals and remaining reciprocal tariffs,” the UK government added.
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