After hinting at a significant trade deal, President Donald Trump announced that the U.S. had reached a trade agreement with the U.K.
President Trump said that the U.S. would continue imposing a 10% tariff on most imports from the U.K. He also said that the deal would open nearly $5 billion in trade for other U.S. industries, especially beef and ethanol.
In return, the U.S. would exempt the U.K. from its 25% tariffs on steel, aluminum and car parts. The deal would allow U.K. automakers to export up to 100,000 vehicles into the U.S. at a 10% duty. The deal is especially impactful for Rolls-Royce, which is based in the U.K.
Tariffs are charged to companies when they ship products internationally. Many economic experts say the cost of tariffs are generally passed from the company to consumers.
While this may disappoint some, as many anticipate that the massive tariffs against China will have the largest impact on the U.S. economy, Trump emphasized that this deal would be "the first of many." The U.K. remains a crucial trade partner for the United States.
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The U.K. sits behind Canada, Mexico, China and the Netherlands as one of the largest purchasers of U.S. goods. The U.K. ranks No. 12 in exports to the U.S.
The United Kingdom is among just a handful of nations in which the U.S. has a trade surplus, as the U.K. imported $79.9 billion in U.S. goods in 2024 while exporting $68.1 billion.
