Fact Sheets

# Fact Sheet: U.S.-UK Reach Historic Trade Deal

The White House
May 8, 2025

ESTABLISHING A NEW PARADIGM FOR OUR SPECIAL RELATIONSHIP: Today, on the 80th anniversary of Victory Day for World War II, President Donald J. Trump and Prime Minister Keir Starmer announced a historic trade deal, providing American companies unprecedented access to the UK markets while bolstering U.S. national security. This is a great deal for America.

- President Trump: “The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all of the products produced by our great farmers.”
  - “The UK will reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products.”
  - “This is now turning out to be, really, a great deal for both countries.”
- Prime Minister Starmer: “This is going to boost trade between and across our countries. It’s going to not only protect jobs, but create jobs, opening market access.”
- This trade deal will significantly expand U.S. market access in the UK, creating a $5 billion opportunity for new exports for U.S. farmers, ranchers, and producers.
  - This includes more than $700 million in ethanol exports and $250 million in other agricultural products, like beef.
  - It commits the countries to work together to enhance industrial and agricultural market access.
  - It closes loopholes and increases U.S. firms’ competitiveness in the UK’s procurement market.
  - It ensures streamlined customs procedures for U.S. exports.
  - It establishes high standard commitments in the areas of intellectual property, labor, and environment.
  - It maximizes the competitiveness and secures the supply chain of U.S. aerospace manufacturers through preferential access to high-quality UK aerospace components.
  - It creates a secure supply chain for pharmaceutical products.
- The reciprocal tariff rate of 10%, as originally announced on Liberation Day, is in effect.
- The United States will agree to an alternative arrangement for the Section 232 tariffs on UK autos.
  - Under the deal, the first 100,000 vehicles imported into the U.S. by UK car manufacturers each year are subject to the reciprocal rate of 10% and any additional vehicles each year are subject to 25% rates.
- The United States also recognizes the economic security measures taken by the UK to combat global steel excess capacity and will negotiate an alternative arrangement to the Section 232 tariffs on steel and aluminum.
  - This deal creates a new trading union for steel and aluminum.
- This U.S.-UK trade deal will usher in a golden age of new opportunity for U.S. exporters and level the playing fields for American producers.
- Today’s action also sets the tone for other trading partners to promote reciprocal trade with the United States.

A FRAMEWORK TO BOLSTER ECONOMIC SECURITY: President Trump continues to advance the interests of the American people, enhancing market access for American exporters and lowering tariff and non-tariff barriers to protect our economic and national security.

- On April 18, President Trump had a call with Prime Minister Starmer to discuss our bilateral trade relationship.
- U.S. total goods trade with the UK was an estimated $148 billion in 2024.
- The UK average applied agricultural tariff is 9.2% while the U.S. average applied agricultural tariff (prior to April 2) was 5%.
- The UK maintains certain tariff and non-tariff barriers that restrict market access and create an unfair playing field for American workers and businesses.
  - For example, the UK imposes tariffs that can exceed 125% on meat, poultry, and dairy products on top of maintaining non-science-based standards that adversely affect U.S. exports.
- On April 2, 2025, Liberation Day, President Trump imposed a 10% tariff on all countries to address unfair trade practices that have contributed to America’s trade deficit and imbalances in order to better protect American workers and our national security.

A MILESTONE IN ADVANCING AN AMERICA FIRST TRADE POLICY: Since Day One, President Trump challenged the assumption that American workers and businesses must tolerate unfair trade practices that have disadvantaged our workers and businesses for decades and contributed to our historic trade deficit.

- Reversing these conditions and addressing the lack of reciprocity in America’s trade relationships will bring about a new Golden Age and Make America Great Again.
- President Trump continues to advance the interests of the American people, enhancing market access for American exporters and lowering tariff and non-tariff barriers.
- The Economic Prosperity Deal with the United Kingdom is a critical step forward in a special relationship to promote reciprocal trade with a key ally and partner.

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