WASHINGTON—President Trump announced an agreement on trade with the U.K. on Thursday, the first in what the White House hopes is a series of such developments since it imposed tariffs against allies and adversaries.
“It’s very conclusive and we think everyone’s going to be happy,” Trump said. “Many countries want to make a deal, and many countries are very unhappy that we happened to choose this one,” he added.
Under the deal , the 10% tariff the U.S. imposed against U.K. goods will remain, though some products will be exempted and auto tariffs against U.K. cars will be lowered to 10%. The U.K. has also committed to import more U.S. goods , including Boeing planes.
Trump said the deal with the U.K. is nearly complete and includes billions of dollars of increased market access for American exports, especially in agriculture, significantly increasing access for American beef, ethanol and “virtually all of the products produced by our great farmers.”
Trump said the U.K. will reduce or eliminate nontariff barriers that unfairly discriminate against American products, as well as fast-track American-made goods through customs.
“This is going to boost trade between and across our countries,” said U.K. Prime Minister Keir Starmer , calling into the Oval Office event over the phone. “Donald, thank you so much.”
Both Trump and Starmer noted that Thursday is the 80-year anniversary of the two countries celebrating victory in Europe from World War II.
U.K. officials said earlier the pact will focus on reducing tariffs in specific sectors. They said some details remain yet to be finalized, which could mean further talks in the future.
Commerce Secretary Howard Lutnick, speaking from the Oval Office, said: “We’ve opened up new market access—ethanol, beef, machinery, all the agricultural products they’ve agreed to open their markets and that will add $5 billion of opportunity to American exporters.”
Financial markets and other countries will watch the deal’s details closely for signs of the Trump administration’s thinking and willingness to strike similar deals with other countries, including those that have a far greater trade imbalance with the U.S. than the U.K.
It could also send a signal to other world leaders over how best to deal with the U.S. president. Starmer has avoided confrontation with Trump over tariffs and the Ukraine war, and instead offered the U.S. leader an unusual second state visit to Britain, including a signed invitation from King Charles . Other countries like China have taken a far more confrontational approach.
Last month, the U.S. imposed a new 10% tariff on most goods imported from the U.K., as part of the baseline tariff it imposed on all nations , and Britain is also subject to the 25% tariffs Trump imposed on all steel and aluminum imports on March 12.
Trump has paused sweeping tariffs on dozens of countries to allow for negotiations but has kept the 10% baseline tariff in place, as well as severe levies on Chinese imports, which have already led to some consumer-price increases on a variety of goods, including baby strollers, cribs and toys . The president has played down price concerns, saying last week that “maybe the children will have two dolls instead of 30.” At the same time, Trump’s unpredictable trade announcements have made investors nervous and pushed major stock indexes lower .
The U.S. is the U.K.’s biggest single trading partner. British officials have argued that the trading relationship between the two nations is broadly balanced.
The U.S. ran a goods trade surplus of $11.9 billion with the U.K. in 2024, according to Census Bureau data. Total trade in goods between the two nations equaled $148 billion, making the U.K. as America’s ninth largest trading partner—behind Vietnam and ahead of India.
Until as recently as this week, British officials remained skeptical that a deal would be signed off imminently, and some were taken by surprise by Trump’s announcement.
Some trade observers expected more of an outline than a fully hashed-out deal.
“This announcement is likely just an agreement to start the negotiations, identifying a framework of issues to be discussed in the coming months,” said international trade attorney Tim Brightbill. “We suspect that tariff rates, non-tariff barriers, and digital trade are all on the list—and there are difficult issues to address on all of these.”
The pact will be a far cry from the comprehensive trade deal Downing Street previously sought to negotiate with the U.S. after Britain quit the European Union a few years ago. Those talks ended after British officials balked at the prospect of giving America’s large pharmaceutical and agricultural industries free access to the U.K. market.
Trump is seeking an array of benefits for the U.S., including agreements that trading partners purchase more U.S. goods and curb nontariff barriers. Trump argues that tariffs will encourage more manufacturing in the U.S.
A trade deal with the U.K., which earlier this week announced the completion of a trade agreement with India that had been stuck for years, would be the first for Trump in his second term. Administration officials have said they are also in close talks with India and Japan, and the president is readying to go to the Middle East next week.
Treasury Secretary Scott Bessent has said his priorities include striking trade deals with countries in Asia . On the sidelines of a Milken Institute Global Conference in Los Angeles earlier this week, Bessent told a crowd that he has been particularly impressed with Indonesia’s trade framework, without providing further details, a person in attendance said.
Vice President JD Vance on Wednesday said the U.S. is engaging with “most nations,” both friends and adversaries. “We just want a little bit more fairness, or to use the president’s word, reciprocity,” he said at a conference in Washington, calling trade discussions the “early innings.”
Bessent and U.S. Trade Representative Jamieson Greer are traveling to Switzerland on Thursday to meet Beijing’s lead economic representative , the first direct talks over trade between senior officials on both sides.
Write to Natalie Andrews at [email protected] , Brian Schwartz at [email protected] and Max Colchester at [email protected]
