The UK and United States have agreed to a new trade deal, confirmed during a live televised phone call between Prime Minister Sir Keir Starmer and President Donald Trump—the first such agreement since Trump began his second presidential term in January and imposed sweeping global tariffs in April.
The deal delivers targeted tariff relief in key areas. US import duties on UK cars will drop from 27.5% to 10%, though capped at 100,000 vehicles per year—roughly the UK’s current export levels.
US tariffs of 25% on British steel and aluminium have been eliminated. While these exports total only about £700 million annually, the move is politically significant, especially following the UK government’s recent intervention to save British Steel from closure.
Agriculture was a sensitive sticking point. The UK upheld bans on chlorinated chicken and hormone-fed beef, with officials insisting there was no compromise on food standards. Nonetheless, the deal allows £5 billion in US agricultural exports into the UK, while opening up the US market exclusively to UK beef farmers.
Other provisions include streamlined customs procedures, preferential access for UK aerospace parts, and greater support for US companies in UK procurement.
Crucially, the 10% duty rate on most UK goods exported to the US remains unchanged.
Some parts of the trade relationship remain unresolved and the team at Westbound will be keeping a close eye on developments during the coming weeks.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
Become a Westbound VIP
From simpler bookings, communication, and collaboration to reporting, insights, and more, our intuitive cloud platform puts everything in one place. So you get control, efficiency, and transparency, and a launchpad for your supply chain.
Related Posts
