US removes tariffs on some UK goods in a deal between the two

The UK has secured a landmark trade deal with the US, marking a significant moment in post-Brexit trade and providing a lifeline to key British industries.

The pact, hailed as a “historic day” by both UK Prime Minister Keir Starmer and US President Donald Trump, will slash tariffs on a range of exports, helping to preserve thousands of UK jobs in sectors such as automotive manufacturing, steel, and agriculture. The UK reportedly becomes the first country to strike a deal with the US after it imposed sweeping tariffs on imports into the US.

The US and UK trade deal makes provision for several goods

Announced days after a similar deal with India, this UK-US agreement represents a substantial shift in transatlantic trade relations. Under the terms of the deal, US tariffs on British car exports will drop from 27.5% to 10% for up to 100,000 vehicles annually—a figure that nearly matches total UK automotive exports to the US last year. Jaguar Land Rover, a key beneficiary, is expected to save hundreds of millions of pounds.

“This deal secures greater certainty for our sector and the communities it supports,” said JLR CEO Adrian Mardell, who emphasized the vital role of the car industry in sustaining 250,000 UK jobs.

Equally significant is the removal of a 25% tariff on UK steel exports, a move that comes just weeks after the British steel industry teetered on the edge of collapse. The agreement follows Prime Minister Starmer’s direct intervention to stabilize British Steel, ensuring operations in places like Scunthorpe continue and thousands of jobs are maintained.

“This is jobs saved, jobs won, but not job done,” said Starmer.

“My government is determined to go further and faster to strengthen the UK’s economy, putting more money in working people’s pockets as part of our Plan for Change.”

Starmer.

The agreement also includes provisions for agricultural trade. British farmers will be able to export up to 13,000 metric tonnes of beef to the US tariff-free, while maintaining strict domestic food safety standards.

Trump acknowledged that while there would be no relaxation of UK beef import rules, the US would benefit from “unprecedented” new market access, citing a $5 billion opportunity for American exporters.

UK reciprocates the gesture

In a reciprocal move, the UK will eliminate tariffs on ethanol—used heavily in British manufacturing—and provide greater access to UK markets for US ethanol, machinery, and vehicles.

Trump, who announced the deal from the Oval Office, praised it as “a tremendous trade deal for both countries.” While some details remain unresolved, including digital service taxes affecting US tech firms, Trump said, “The final details are being written up and will be concluded in the coming weeks.”

The agreement has also sparked optimism around broader collaboration. A future partnership is being discussed in advanced technologies, including biotech, nuclear fusion, quantum computing, and aerospace. The deal is also expected to pave the way for a digital trade pact aimed at reducing paperwork for British firms exporting to the US.

Business and Trade Secretary Jonathan Reynolds called the agreement “a major win” for UK industries.

“Our calm and proactive approach has cut tariffs for UK industry and cut costs for businesses. But this is only the beginning—we are working towards a broader economic framework with the US.”

Reynolds.

Though questions remain, particularly around pharmaceuticals and digital taxation, both governments have agreed that the UK will receive preferential treatment in any future tariff investigations under Section 232.

As Prime Minister Starmer noted that: “The new global era demands a government that steps up, not stands aside.” With back-to-back deals with India and the United States, the UK appears to be making a decisive statement on its post-Brexit economic strategy—one built on strong global alliances and protecting domestic industries.

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