Donald Trump has  slashed tariffs on British-made cars exported to the US as part of what he called “a great deal” for both the US and UK. Announcing the trade deal he said: “This is a really fantastic, historic day”. A jubilant Keir Starmer called agreement “historic” as Mr Trump set out details when he spoke in the White House.

Mr Trump said the US-UK trade deal affirms the “reciprocity and fairness” that he believes is essential to international trade. The deal involves the UK agreeing to allow American exports including American beef, ethanol, and other agricultural products. Mr Trump said: “They’ll also be fast tracking American goods through their customs process, so our exports go to a very, very quick form of approval, and there won’t be any red tape.”

The key benefit for the UK is that Britain will be able to send 100,000 cars into the US with a tariff of just 10% – down from 25%. In additon, the UK steel industry will no longer face tariffs thanks to today’s deal after the US tariff was cut from 25% to zero.

Both countries will be able to see beef to each other. And the UK will remove the tariff on ethanol – which is used to produce beer – coming into the UK from the US, down to zero. But the general US tariff on most other UK exports will remain.

The US President said:

• “Virtually all of the products produced by our great farmers” including beef will be available for sale in the UK.
• The UK will reduce or eliminate numerous non-tariff barriers that “unfairly” discriminate against US goods.
• They will also be fast tracking of American goods through the UK customs process so that exports are approved faster.
• American chemical products will be sold in the UK.
• The deal includes plans for the UK to be part of an “economic security alignment with the United States”.
Advertisement
• Mr Trump was full of praise for British Prime Minister Sir Keir Starmer and said the UK was probably America’s greatest ally.

For Mr Trump the deal is being touted as the first of many, with deals also possible with India and Japan in the near future.

Sir Keir said: “The new global era demands a government that steps up, not stands aside. This historic deal delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel.

“My government has put Britain at the front of the queue because we want to work constructively with allies for mutual benefit rather than turning our back on the world. As VE Day reminds us, the UK has no greater ally than the United States, so I am delighted that eight decades on, under President Trump the special relationship remains a force for economic and national security.

“This is jobs saved, jobs won but not job done and our teams will continue to work to build on this agreement. My Government is determined to go further and faster to strengthen the UK’s economy, putting more money in working people’s pockets as part of our Plan for Change.”

Business and Trade Secretary Jonathan Reynolds said: “I am delighted our calm approach and proactive engagement with the US has resulted in this deal which cuts tariffs for UK industry and cuts costs for businesses. Businesses across the country will be glad to see our approach working, but this is only the beginning. We look forward to strengthening our trading relationship with the US through a wider economic deal, which will help us to deliver on our Plan for Change to provide economic stability and make this country fit for the future.”

Bank of England governor Andrew Bailey said it was “excellent that the UK is leading the way” with an expected trade deal with the US, which will “help to reduce uncertainty”.

In a post on his Truth Social platform earlier today, Mr Trump said: “This should be a very big and exciting day for the United States of America and the United Kingdom.”

He added: “The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.

“Because of our long-time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”

Most Popular Comments

“I will keep this simple. There may be Remoaners reading. Trading figures between the UK and its 2 biggest trading partners, the EU and US. (The …” 33

“Good to have the choice of being able to purchase American Beef and vica vera for our …” 14

“Perhaps niw he can concentrate on stopping the boats” 14

JOIN THE DEBATE

Number 10 had been expecting the announcement of a deal, but the timing of Mr Trump’s post came as a surprise, given the focus on VE Day commemorations.

Asked whether it had come as a surprise, the Prime Minister’s official spokesman said: “We have been progressing this deal over the last few weeks and months, and officials have been in the US progressing these talks over the last few days as well.

“We’ve obviously been working at pace to do the deal, and to do a deal that is in British national interests.”

The deal with the UK will be the first agreement since Mr Trump announced the “liberation day” tariffs on countries around the world on April 2.

It comes after the UK announced a massive trade deal with India.