A new free trade deal between the United States and the United Kingdom has been described as a “fantastic, historic day” by Prime Minister Sir Keir Starmer, after its official announcement along with US President Donald Trump at the White House.
Terming it a “big deal for both nations,” President Trump said that most of the agreement had been approved while a few final touches were still being worked upon. The agreement arrived in reaction to the tariffs imposed heavily by Trump last month, with all UK exports facing a 10% tariff and steel, aluminium, and cars being charged a 25% tariff.
Attempts to gain a free trade deal with the US have gone on for decades under successive governments, but this is the biggest breakthrough so far. Trump attributed the leadership skills of Starmer, stating, “It did with this Prime Minister,” whilst Starmer reported that he was “really pleased” with the progress made.
Under the agreement, US tariffs on British-built cars will be cut to 10% for the first 100,000 units, and steel tariffs will be abolished. UK steel union Community hailed the move as it would save jobs. The UK has promised to cut tariffs on US products like beef and ethanol in exchange, with American exports set to gain by $5 billion.
US-made Boeing aircraft will also see a major order from a UK airline, and British-made Rolls-Royce engines will be exempt from new tariffs.
Despite the positive reception from government officials, opposition voices expressed concern. Conservative leader Kemi Badenoch claimed the deal unfairly favored the US, while the Liberal Democrats called for a parliamentary vote, warning of potential hidden costs.
Digital taxes on US tech companies stay at the same level, while both countries have agreed to move toward a standalone digital trade agreement to facilitate exports. Ministers will report to Parliament later today.
