President Donald Trump announced on Thursday that the United States and the United Kingdom have agreed on a trade framework, marking the first significant agreement since the White House imposed steep global tariffs last month.
“The final details are being written in the coming weeks,” Trump said during an event in the Oval Office.
He described the agreement as a step toward greater market access for American agriculture, chemicals, machinery, and industrial products.
Trump emphasised the importance of economic cooperation between the two countries, stating,
“Both countries have agreed that economic security is national security, and we’ll be working together as allies to ensure that we have a strong industrial base, appropriate export controls, and protections for key technologies and industries like steel.”
President Trump Makes a Trade Announcement, May 8, 2025 https://t.co/FcM16YIDL6
— The White House (@WhiteHouse) May 8, 2025
A framework, not a final deal
Despite Trump’s optimistic portrayal, the deal is a framework rather than a completed agreement. While the announcement outlines potential benefits, such as billions of dollars in increased market access for American agriculture, it leaves many specifics unresolved.
Agriculture Secretary Brooke Rollins acknowledged that crucial details regarding market access for American agricultural products remain under negotiation.
UK officials also stressed that British food standards will not be lowered, potentially limiting access for some US agricultural exports.
Mixed market reactions and ongoing tariffs
The framework retains the controversial 10% baseline tariff that Trump imposed on the UK and other trading partners on 2 April.
Critics, including Senator Ron Wyden (D-Ore.), expressed scepticism about the deal’s substance.
“The details aren’t even finalized. There’s not much THERE, there,” Wyden said, adding that American families and businesses would continue facing high costs due to the retained tariffs.
Trump’s administration agreed to reduce its additional 25% tariff on auto and auto parts to 10% for the first 100,000 UK cars entering the US. The deal also replaces a 25% tariff on steel and aluminium imports with a new “alternative arrangement,” still to be negotiated.
Former President Joe Biden had previously secured a similar arrangement with the UK, Japan, and the European Union, but Trump abandoned these earlier this year.
Economic implications and sector reactions
The US Commerce Department projects the deal could generate approximately $5 billion in new export opportunities, including $700 million in ethanol and $250 million in beef and other agricultural products. However, the overall increase in US exports would be relatively small, given the size of total US trade.
Prime Minister Keir Starmer praised the framework during a phone call from a car factory in the West Midlands, saying,
“With this president and this prime minister, we’ve managed to achieve what many people have tried to achieve for years. It feels completely historic.”
However, Starmer also acknowledged that the framework fell short of the comprehensive free trade agreement originally envisioned. British officials insisted that the country’s food standards would not be compromised, which may limit the scope of agricultural imports from the US.
Today I’ve secured a deal with the US that boosts British businesses and saves thousands of British jobs.
I promised to protect British car makers and save our steel. This deal delivers on that promise.
And British workers, families, and firms will feel the benefit. pic.twitter.com/FT79klCMdi
— Keir Starmer (@Keir_Starmer) May 8, 2025
Industry perspectives
The Society of Motor Manufacturers and Traders (SMMT) welcomed the deal, calling it “great news” and highlighting the reduced tariffs on automotive exports as a relief.
“Trump’s auto tariffs posed a severe and immediate threat to UK automotive exporters, so this deal will provide much-needed relief,” said SMMT Chief Executive Mike Hawes.
However, some US business groups remained cautious. Jake Colvin, president of the National Foreign Trade Council, noted that retaining the 10% tariff on most UK imports would still represent a significant increase from previous levels.
“If this agreement leaves in place a 10 percent US tariff on most imports from the UK, that would constitute a four-fold increase from the duties that existed prior to the president’s April 2 announcement,” Colvin stated.
Broader trade dynamics
The deal sets the tone for upcoming trade agreements, as Trump eyes partnerships with Asian economies such as India, South Korea, and Vietnam.
Wendy Cutler, a former negotiator in the US Trade Representative’s Office, noted that the UK deal might inspire other countries, particularly Japan and Korea, to seek similar tariff concessions.
With the 8 July deadline looming, when reciprocal tariffs as high as 50% are set to be reinstated, the pressure remains on the Trump administration to secure more agreements.
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