President Donald Trump on Thursday called the negotiations between the United States and the United Kingdom a “huge deal” but didn’t announce many concrete details in the Oval Office. Instead, he offered broad strokes.
Leaders of both countries stressed that there were still some details in flux. British Prime Minister Keir Starmer said the details would be “ironed out” over time. But the outlines of that announcement could develop a concrete pathway to a broader trade pact.
Some aspects of the negotiations, however, became clear Thursday.
Commerce Secretary Howard Lutnick said the United Kingdom would reduce trade barriers of several agricultural products, including ethanol and beef, and machinery to the United States.
Lutnick added that a 10% tariff on all UK imports will remain in place. Agriculture Secretary Brooke Rollins said the tariffs on ethanol will be reduced to “zero,” adding that the deal will also result in higher US beef exports.
Britain will also be able to send 100,000 cars into the United States at a 10% tariff rate, reduced from the 25% autos tariffs Trump imposed on foreign cars, Lutnick announced. The UK will also join the US in imposing 25% tariffs on foreign steel and aluminum, creating a joint tariff agreement that will create a free trade zone for those metals between the two countries. Pharmaceuticals will also be exempt from tariffs between the two countries.
Prime Minister Keir Starmer said the deal will “remove tariffs on British steel and aluminium, reducing them to zero,” and will “grant unprecedented access for British farmers without compromising our high standards,” during a press conference in England, Thursday.
According to industry data, last year Britain sent £370 million ($492 million) worth of steel to the United States, accounting for 9% of the United Kingdom’s total steel exports.