Trump, Starmer Tout Breakthrough U.S.-U.K. Trade Pact/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The United States and the United Kingdom are expected to announce a new trade deal that eases tariffs on key industries such as cars and steel. The agreement marks a significant moment for Prime Minister Keir Starmer and President Donald Trump, who seeks to validate his aggressive trade agenda. Though limited in scope, the deal ends years of stalled talks since Brexit.
U.S.-U.K. Trade Deal Quick Looks
- Announcement Timing: Trump and Starmer to reveal deal Thursday morning.
- Deal Scope: Focus on easing tariffs for U.K. auto, steel, and pharma sectors.
- Trump’s Strategy: Comes amid shift from blanket tariffs to bilateral deals.
- Brexit Context: U.K. free to strike independent deals post-EU exit.
- Trade History: Talks began in 2020, stalled under Biden, resumed under Trump.
- Symbolic Victory: Seen as political win for both Trump and Starmer.
- U.S. Imports: U.K. accounts for just 2% of U.S. goods imports.
- U.K. Reliance: U.S. remains Britain’s top trading partner.
- Agriculture Dispute: U.K. refuses to lower food standards for U.S. imports.
- Broader Strategy: Trump teases more trade deals in the pipeline.
Deep Look: U.S. and U.K. Close In on Trade Deal Aimed at Tariff Relief and Post-Brexit Reset
The United States and the United Kingdom are preparing to unveil a long-anticipated trade agreement that will ease tariffs and strengthen economic ties between the two nations, according to officials and statements from both governments. The announcement, expected Thursday, will mark the first major bilateral trade deal under President Donald Trump’s second term and serve as a pivotal foreign policy achievement for U.K. Prime Minister Keir Starmer.
In a post on his Truth Social platform, Trump hailed the agreement as “full and comprehensive”, though early indications suggest it will focus primarily on reducing tariffs in key sectors like automobiles, steel, and pharmaceuticals, rather than offering a sweeping overhaul.
From Trade War to Targeted Deals
The agreement arrives as Trump pivots from his earlier strategy of sweeping, across-the-board import tariffs—introduced in April 2025—to a new model that emphasizes individual trade deals with allies and partners. While the administration has yet to finalize agreements with key players like Canada, Mexico, or China, the U.K. deal will be his first successful bilateral breakthrough.
Trump touted the move as a vindication of his tough trade tactics, suggesting that other countries will soon follow the U.K. in negotiating terms favorable to American producers.
A Brexit Milestone for Britain
For Britain, the deal delivers on a long-standing post-Brexit ambition: to show the economic value of leaving the European Union. Negotiations initially began in 2020 under Trump’s first term, but they stalled during the Biden administration, largely due to concerns over Brexit-related trade complications and U.K. food safety standards.
Talks resumed after Trump returned to office in January 2025 and have accelerated in recent weeks, culminating in this announcement.
What’s in the Deal?
While exact terms remain under wraps, officials on both sides say the deal aims to:
- Lower the 25% U.S. tariff on British car and steel exports, which hit U.K. manufacturers hard.
- Offer tariff relief for British pharmaceuticals, a key export sector.
- Expand U.S. agricultural access to the U.K. market, though Britain has reaffirmed its food standards, rejecting imports of hormone-treated beef and chlorine-washed chicken.
For the U.K., the U.S. is its largest single trading partner, with over a quarter of British auto exports heading to America in 2024. The U.S., by contrast, imports only 2% of its goods from the U.K., making the deal more symbolically important than economically transformative for Washington.
Politics Over Profit
The trade surplus the U.S. enjoys with the U.K.—$11.9 billion in goods in 2024—suggests that this deal will not significantly address the trade imbalance that Trump frequently cites as a motivator for tariffs. Nonetheless, the White House is expected to promote the agreement as a sign that the administration’s aggressive stance on trade is delivering results.
In the U.K., the Starmer government is likely to present the deal as a diplomatic success born of pragmatism, not confrontation. Unlike the European Union, Britain did not retaliate with its own tariffs in response to Trump’s initial hike, a move analysts say helped create goodwill with the Trump administration.
A First, But Not the Last
In addition to the U.K., Britain is pursuing new trade agreements with India, which was announced earlier this week, and working to improve relations with the EU following Brexit-induced frictions.
Both leaders are expected to speak publicly about the agreement Thursday, with Trump addressing the nation from the Oval Office at 10 a.m. ET and Starmer making a parallel statement from London.
As with all trade deals, the success of the agreement will be judged not just by the sectors it immediately affects, but by the political momentum and global positioning it delivers for the leaders behind it.
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