The U.S. president, Donald Trump, announced this Thursday a trade agreement with the United Kingdom that, according to him, will mark a milestone in bilateral economic relations and will particularly benefit farmers and industrial producers in his country.
"This morning, I am pleased to announce that we have reached a trade agreement with the United Kingdom. An incredible country. Today is a day of victory for World War II. We won together exactly 80 years ago, so there could not be a better date to achieve this historic agreement," Trump said at a press conference from the Oval Office of the White House.
The president was accompanied by his vice president, JD Vance, and the British ambassador to Washington, Peter Mandelson.
According to the agency EFE, the agreement includes that London will eliminate numerous non-tariff barriers that have previously restricted access to the British market for American agricultural products, chemicals, and machinery.
Trump stated that these restrictions "unfairly discriminated" against his country's products.
"This pact includes billions of dollars in increased market access for U.S. exports, especially in agriculture, drastically enhancing access for U.S. beef, ethanol, and virtually all products produced by our large farmers," he stated.
It was also highlighted that the United Kingdom will begin importing U.S. industrial products that were previously banned, including chemicals and machinery, which will allow Britons to "obtain products at affordable prices."
According to Agriculture Secretary Brooke Rollins, tariffs on U.S. ethanol will drop from 19% to zero, which she described as "great news for our farmers."
Trump thanked British Prime Minister Keir Starmer and his team, whom he described as "very talented," for reaching this "agreement of reciprocity and justice," a principle that he stated his administration aims to apply to all future trade treaties.
This would be the first in a series of agreements that the Trump administration has been negotiating in recent weeks as part of its renewed international trade agenda.
Despite the progress achieved, President Trump confirmed that the United States will maintain the 10% tariff on British products, imposed last April, reported EFE.
Nevertheless, he described the agreement as "very conclusive" and stated that "the final details will be finalized in the coming weeks."
The Secretary of Commerce, Howard Lutnick, explained that the 10% tariff will remain in effect and is expected to generate around $6 billion in revenue for the U.S. He also noted that the United Kingdom is still subject to the 25% tariffs on steel and aluminum, although the new agreement provides for a potential easing through export quotas.
In the automotive sector, one of the most sensitive areas for London, Washington agreed that the United Kingdom may export up to 100,000 vehicles to the U.S. market while paying only a 10% tariff, a reduction from the previous 25% and a significant relief for British brands such as Jaguar and Rolls Royce.
"We manufacture 16 million cars a year. This represents only 0.6%, but for British manufacturers, it means tens of thousands of jobs," argued Lutnick, while Trump justified the measure by stating that these are "special cars" that are not produced in the U.S. and therefore do not directly compete with the local industry.
The agreement also includes the elimination of tariffs for Rolls Royce aviation engines, which can be exported freely to Boeing.
Additionally, the United Kingdom is expected to announce within the next few hours a purchase of Boeing aircraft valued at $10 billion, in a new gesture to strengthen the bilateral relationship.
In 2024, trade between both countries amounted to about 148 billion dollars, with a surplus of nearly 12 billion in favor of the United States.
The White House highlights this new agreement as the first of several treaties currently being negotiated as part of the Trump administration's trade agenda.
Trump says that the European Union wants to "reach an agreement at all costs."
During the same press conference, Trump stated that the European Union is pushing for a trade agreement with the United States.
"Definitely, the European Union is something important. They want to reach an agreement at all costs. Everyone wants to come to an agreement with the United States. And we are achieving that," he assured.
According to the agency EFE, when asked about a possible meeting with the President of the European Commission, Ursula von der Leyen, Trump simply said that “she is fantastic” and mentioned that he saw her “a few days ago,” referring to their recent encounter during the funeral of Pope Francis in the Vatican.
The statements come amid bilateral negotiations aimed at preventing an open trade war, as Brussels has already warned that it is prepared to respond with retaliatory measures if no agreement is reached.
The European Commission announced that it will file a request for consultations with the World Trade Organization (WTO) to challenge the 10% universal tariffs and specific levies that the U.S. imposed on European steel, aluminum, cars, and auto parts.
Since his return to power in January, Trump has imposed new tariffs of 25% on key products from the European bloc, suspending a 20% rate for 90 days, which could be applied if there are no concrete advancements in the negotiations.
Brussels estimates that its potential retaliatory measures could amount to 95 billion euros (about 106 billion dollars), in what would be the largest transatlantic trade escalation in years if an agreement is not reached.
Frequently Asked Questions about the Trade Agreement Between the United States and the United Kingdom
What benefits does the trade agreement between the United States and the United Kingdom bring to American farmers?
The trade agreement will allow for a significant increase in access to the British market for U.S. agricultural exports, especially for beef and ethanol. This directly benefits American farmers, who will be able to sell more products to the United Kingdom without the non-tariff barriers that existed previously.
How does this agreement affect the automotive industry in the United Kingdom?
The United Kingdom will be able to export up to 100,000 vehicles to the U.S. market paying only a 10% tariff, which represents a reduction from 25% to 10%. This is a significant relief for British brands like Jaguar and Rolls Royce, easing their access to the U.S. market and securing jobs in the British automotive industry.
Which American industrial products will have greater access to the British market?
The agreement eliminates restrictions on the importation of American industrial products such as chemicals and machinery to the United Kingdom. This will allow the British to access products at more affordable prices and will open new opportunities for American industrial companies.
Will the United States maintain any tariffs on British products?
The United States will maintain a 10% tariff on British products, which was imposed in April. Although the agreement allows for the possibility of relaxing some tariffs through export quotas, the 10% tariff will continue to generate significant revenue for the U.S.
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