IMPLEMENTING A HISTORIC TRADE DEAL: Yesterday, President Donald J. Trump signed an Executive Order implementing American commitments under the General Terms of the United States-United Kingdom Economic Prosperity Deal.
- This historic trade deal provides American companies unprecedented access to British markets while bolstering U.S. national security.
- The deal will include billions of dollars of increased market access for American exports, especially for beef, ethanol, and certain other American agricultural exports.
- The UK will reduce or eliminate numerous non-tariff barriers that unfairly discriminate against American products, hurt the U.S. manufacturing base, and threaten our national security.
- The U.S. and UK will negotiate preferential treatment outcomes for UK pharmaceuticals and pharmaceutical ingredients contingent on the findings of a Section 232 investigation.
- The U.S. and UK have also committed to adopting a structured, negotiated approach to addressing U.S. national security concerns regarding sectors that may be subject to future Section 232 investigations and UK compliance with certain supply chain security standards.
- This Executive Order addresses automobiles, aerospace, and steel and aluminum.
- For automobiles, the Order provides that the first 100,000 vehicles imported into the U.S. by UK car manufacturers each year will be subject to a total tariff rate of 10% (7.5% plus 2.5% most-favored-nation rate) and any additional imported vehicles each year will be subject to the automobile Section 232 tariff rate of 25%.
- Additionally, automotive parts that are products of the UK and are for use in UK vehicles will be subject to a total tariff rate of 10%.
- For aerospace, the Order provides that certain UK products will no longer be subject to tariffs, thus strengthening aerospace and aircraft manufacturing supply chains.
- For steel and aluminum articles and their derivatives, the Order provides that the Secretary of Commerce, in consultation with the U.S. Trade Representative, will establish tariff-rate quotas for UK products consistent with the General Terms of the Economic Prosperity Deal and pursuant to certain principles outlined in the Order. Products outside those quotas or that do not meet certain requirements will remain subject to existing Section 232 tariffs.
- Today’s action strengthens our bilateral relationship with the UK and sets the tone for other trading partners to promote reciprocal trade with the United States.
ADVANCING RECIPROCAL TRADE: This U.S.-UK trade deal will usher in a golden age of new opportunity for U.S. exporters and level the playing field for American producers.
- 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 in order to better protect American workers, manufacturers, and our national security.
- In 2024, the U.S. total goods trade with the UK was an estimated $148 billion.
- The UK average applied agricultural tariff was 9.2%, while the U.S. average applied agricultural tariff (prior to April 2) was 5%.
- On April 18, President Trump had a call with Prime Minister Starmer to discuss our bilateral trade relationship.
- On May 8, President Trump and Prime Minister Keir Starmer announced this historic Economic Prosperity Deal.
USHERING IN A NEW ERA OF PROSPERITY: Since Day One, President Trump has challenged the assumption that American workers and businesses must tolerate unfair trade practices that disadvantage our workers and businesses and contribute to our historic trade deficit.
- 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.
- The Economic Prosperity Deal with the United Kingdom is a critical step toward promoting reciprocal trade with a key ally and partner.
- 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.”