For months, the UK had worked hard to secure relief from US tariffs, introduced by President Donald Trump. Finally, that effort has paid off, putting the UK ahead of other nations chasing similar agreements.
Trump confirmed the breakthrough on social media, teasing a “major trade deal” announcement from the Oval Office. This move surprised British officials, as US media leaked the news overnight. Nonetheless, the announcement delighted the UK government.
This agreement comes just two days after Britain finalized a sweeping free trade deal with India. That deal is set to boost bilateral trade by £25.5 billion and increase the UK’s GDP by £4.8 billion each year. The UK-India deal will also make it easier to export British goods to India and will reduce taxes on Indian clothing and footwear.
As Trump rolled back tariffs worldwide, the UK pressed hard for a focused agreement. Currently, US tariffs stand at 10% on most UK imports, with 25% duties on steel, aluminium, cars, and car parts. Britain has prioritized lowering tariffs on steel and vehicles. Meanwhile, the US side is keen to gain concessions on pharmaceuticals and technology exports.
This success arrives at a crucial political moment for Starmer, who has faced mounting pressure at home. After recent local election setbacks, the prime minister needed a political boost. This deal provides just that, especially as previous Conservative governments failed to secure such agreements.
Key political voices have weighed in. Shadow business and trade secretary Andrew Griffith welcomed the news, calling it another Brexit benefit. Yet he stressed that restoring economic growth also requires tackling Labour’s policies and lowering energy costs.
Liberal Democrat Treasury spokesperson Daisy Cooper demanded Parliament have a vote on the agreement. She warned against any concessions that could harm the NHS, damage farmers, or hand tax breaks to US tech giants.
Although Trump labeled it a “trade deal,” observers note it will likely focus on tariff reductions rather than a full free trade pact. Nevertheless, the US remains Britain’s top trading partner, purchasing nearly £200 billion in UK exports annually.
For Starmer, this deal marks a clear political win. Not only has he landed a US agreement, but he also wrapped up the long-sought India trade pact.
This significant achievement strengthens Starmer’s standing both at home and abroad. It underscores the government’s ability to deliver despite domestic challenges. Indeed, this significant achievement reshapes UK trade priorities. Going forward, this significant achievement could set the stage for further deals.
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