U.S. and U.K. Reach Preliminary Trade Agreement, Retaining Some Tariffs

On Thursday, President Trump declared the United States’ intention to finalize a trade agreement with the United Kingdom designed to deepen economic cooperation and reduce certain tariffs imposed on British imports.

The two nations view the prospective trade pact as mutually advantageous, with negotiations ongoing since the early years of Mr. Trump’s administration. However, the announcement offered limited specifics, reflecting the rapid pace at which the administration is seeking to negotiate multiple international trade deals and reshape global commerce.

Under the terms outlined, the United Kingdom would eliminate tariffs on American exports including beef, ethanol, and sports equipment, while committing to purchase $10 billion worth of Boeing aircraft. In exchange, the U.S. would reduce tariffs on British automobiles and steel, although a 10 percent tariff on most British exports will remain.

The timeline for the agreement’s implementation has not been specified. Both governments must meet in the upcoming months to finalize the agreement’s language, leaving room for potential adjustments. British officials continue to advocate for the removal of the remaining 10 percent tariff on most goods.

Despite outstanding details, leaders from both countries emphasized the strength of their partnership during joint statements. Speaking from the Oval Office with Britain’s Prime Minister Keir Starmer connected via speakerphone, President Trump described the agreement as a "great deal for both countries." Prime Minister Starmer also marked the occasion by acknowledging the 80th anniversary of the Allies’ victory in Europe during World War II.