President Donald Trump announced Thursday the United States and the United Kingdom reached a new trade agreement. The deal is set to reduce tariffs on some British goods entering the U.S. market and remove certain barriers for American products in the UK.
The agreement includes a reduction of U.S. tariffs on British-made automobiles to 10% from the current 27.5%. Gravies on steel and aluminum imports from the United Kingdom will also be eliminated entirely, according to statements from the British government.
Speaking from the Oval Office, Mr. Trump described the agreement as “complete and comprehensive.” He stated it would strengthen relations between the two countries for years to come. This marks the first bilateral trade agreement reached since his administration began imposing tariffs on various trading partners.
The UK will remove several non-tariff barriers to allow greater market access for U.S. agricultural and chemical products. This has been a point of negotiation, particularly concerning food standards. The government led by Prime Minister Keir Starmer has stated it would not lower UK food standards, specifically mentioning chlorine-washed chicken or hormone-treated beef.
Mr. Starmer's office confirmed the prime minister would provide an update on the trade talks later Thursday. News outlets across the United States, including Univision, reported on the announcement.
Mr. Trump had previously imposed tariffs, including a 10% tax on many imports from Great Britain and 25% on steel and aluminum, arguing the measures supported domestic manufacturing jobs. A key goal for UK negotiators was reducing or eliminating the U.S. tax on their auto and steel exports. The United States is the largest market for British automobiles.
Official data from the Bureau of the Census indicates the United States held a $11.9 billion trade surplus in goods with the United Kingdom last year. While the UK is a major overall trade partner for the U.S., a larger portion of British exports to the U.S. consists of services rather than goods.
Mr. Trump has expressed interest in a trade deal with the United Kingdom since its decision to leave the European Union in 2016.
The agreement represents a political success for Keir Starmer. The UK government is also pursuing other trade deals, having recently announced one with India and continuing efforts to reduce trade barriers with the EU following its departure in 2020. A Trump-Starmer agreement video report about the announcement was published online Thursday.
Speaking Wednesday evening before the announcement, Mr. Donald Trump suggested the UK was eager for a deal.
"I think the United Kingdom, like any other country, wants... to go shopping in the United States of America," he said.
