UK and US Agree on New Tariff Deal to Boost Trade

Big Relief for UK Steel, Cars, and Aluminium Exports

The United Kingdom and the United States have reached a new trade agreement that will help businesses on both sides. Under this deal, the US will lower or remove tariffs (extra import taxes) on many British goods, especially cars, steel, and aluminium.

Previously, the US had a 25% tax on British steel and aluminium, but now this tax will be removed. For British cars, the tax will drop from 25% to just 10% — but only for up to 100,000 vehicles each year.

UK to Allow More US Beef and Ethanol

In exchange, the UK will reduce its own import taxes. It will allow more American beef into the UK market and remove tariffs on ethanol, which is a type of alcohol made from corn that is used in fuel and beverages.

This means farmers and manufacturers in the US will have new ways to sell their products in the UK, helping boost their income.

Trump and Starmer Make Joint Announcement

The deal was announced by US President Donald Trump and UK Prime Minister Keir Starmer. Even though they are from different political backgrounds, both leaders agreed this deal is good for their countries.

Trump said the deal supports American farmers and will create new business opportunities. Starmer, speaking from London, said it’s a proud moment for both nations.

Symbolic Day: Announced on VE Day

The announcement was made on May 8, which is the 80th anniversary of Victory in Europe (VE) Day — the day World War II ended in Europe. Leaders said the timing is important because it reminds people of the strong friendship between the US and the UK.

A Step Toward a Bigger Trade Deal

While this is not a full trade agreement, it is seen as a first step toward a larger trade deal in the future. Other countries, like Canada, are watching this deal closely. They also face high tariffs from the US and may look to make similar agreements.

A Political Win for Starmer

The deal is a big moment for Keir Starmer, especially after his party, Labour, lost support in recent local elections. It also follows the UK’s recent trade deal with India, showing that the country is working hard to grow its global trade ties.