The United States and United Kingdom have struck a preliminary deal to roll back some of the steep import taxes that President Donald Trump imposed earlier this year. Under the agreement, the 25% tariff on UK-assembled cars will be reduced to 10% for the first 100,000 vehicles imported annually a volume roughly matching last year’s exports and steel and aluminium tariffs of 25% will be lifted for UK producers.
UK Prime Minister Sir Keir Starmer, speaking at a Jaguar Land Rover facility in the West Midlands, described the pact as a “fantastic platform” that “protects thousands of British jobs in key sectors including car manufacturing and steel.” In Washington, President Trump lauded the outcome as a “great deal,” hinting at further talks to expand its scope.
In return, the UK secured a quota of 13,000 tonnes of duty-free beef imports, satisfying a long-standing US demand, and the US will open its market to an additional $700 million of ethanol and $250 million of other agricultural products. The White House estimates the agreement will create a $5 billion export opportunity for American farmers and producers.
Industry reaction was mixed. UK Steel’s director general, Gareth Stace, welcomed the “major relief” for the steel sector. BritishAmerican Business, representing bilateral firms, noted the deal “is better than yesterday but not better than five weeks ago,” since it essentially reinstates pre-tariff arrangements. Conservative MP Kemi Badenoch criticized it as “tariffs being lowered by the UK while being hiked in the US,” and Liberal Democrats demanded parliamentary scrutiny, warning MPs must have a say.
Despite the headline measures, many analysts caution that the pact does not alter the broader 10% tariff on most UK goods or address other contentious issues such as pharmaceuticals. Oxford Economics deputy chief economist Michael Pearce said the agreement changed little of the pre-existing trade relationship and advised no revision to economic forecasts. Details on preferential treatment for UK pharmaceutical exports remain unclear, leaving industry stakeholders awaiting further clarification.
No formal treaty has yet been signed, and final terms are still being negotiated. The deal is seen as a stopgap ahead of more comprehensive trade talks, including a planned UK-EU summit on May 19 and potential expansion into a full US-UK free-trade agreement.
