A Game-Changer for UK Industry
In what’s being hailed as a “historic day”, US President Donald Trump and UK Prime Minister Keir Starmer have announced a sweeping trade agreement between the two countries—marking the first such deal since the US imposed broad new tariffs on foreign imports. The pact delivers deep tariff cuts on automotive, steel, and agricultural exports, offering an economic boost to thousands of UK jobs and providing much-needed clarity to exporters navigating post-Brexit waters.
“This deal secures greater certainty for our sector and the communities it supports,” said Jaguar Land Rover CEO Adrian Mardell, highlighting the deal’s expected hundreds of millions in savings for the iconic British carmaker.
Steel, Cars, and Beef Get a Break
Key terms of the deal include:
- US car tariffs on British vehicles will drop from 27.5% to 10% for up to 100,000 units—nearly the UK’s entire 2023 export volume to the US.
- A 25% steel tariff on UK exports is being removed, safeguarding operations at major plants like Scunthorpe and preserving thousands of jobs in the steel sector.
- The UK will gain the right to export up to 13,000 metric tonnes of beef to the US annually tariff-free, while maintaining strict food safety regulations.
US Wins Too: Ethanol, Vehicles, and Market Access
The UK is reciprocating, cutting tariffs on US ethanol, machinery, and vehicles, while also promising better market access for American exporters. President Trump, speaking from the Oval Office, called the agreement “a tremendous trade deal for both countries,” adding that a $5 billion opportunity now awaits American beef exporters.
Beyond Tariffs: Tech, Biotech, and Digital Trade on Horizon
The deal lays the groundwork for deeper economic ties, with both countries eyeing future partnerships in:
- Quantum computing
- Nuclear fusion
- Aerospace innovation
- Biotech and digital trade
UK Business and Trade Secretary Jonathan Reynolds framed the deal as “a major win” that will cut costs and open new doors for British businesses.
A New Post-Brexit Trade Strategy Emerges
With this breakthrough deal and another recently struck with India, the UK is signalling a bold new trade strategy focused on strategic global alliances, especially in sectors critical to national resilience.
