President Donald Trump announced a trade deal with the United Kingdom during a White House event Thursday. The deal is described as "full and comprehensive" and is the first such agreement since Trump imposed sweeping global tariffs last month.
The deal includes increased market access for American exports, particularly in sectors such as chemicals, machinery, and other industrial products.
“The deal includes billions of dollars in increased market access for American exports. In addition, the UK will reduce or eliminate non-tariff barriers that unfairly discriminated against American products,” Trump said.
Tariffs on U.K. car imports will be reduced from 27.5% to 10%, and that of U.K. steel imports will be dropped. Rolls-Royce engines and plane parts will be allowed to enter the U.S. tariff-free.
The U.K. will reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products; and will lower trade barriers on U.S. beef imports and ethanol.
The deal is expected to create $5 billion in new economic opportunities for U.S. exporters.
The final details of the deal are still being written up and will be made more conclusive in the coming weeks. The specifics of the deal will need to be approved by the US Congress.
The deal is seen as a significant achievement for both Trump and U.K. Prime Minister Keir Starmer, who have been working to strengthen economic ties despite recent trade tensions.
In his remarks, Trump emphasized that this deal is the first of many, with other countries in various stages of negotiation.
Thursday's announcement marks a significant step in U.S.-U.K. trade relations and is expected to have broader implications for global trade negotiations.
Stock markets responded positively to the news, with all three major US stock indexes climbing.
