Results of the UK-US trade agreement: a complete summary

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Kiel’s starmer and Donald Trump. Credit: Joshua Ascoff, Shutterstock

The UK and the US have agreed to a new economic transaction that cuts major tariffs and offers significant profits, limited to automakers and steel producers.

The agreement, announced today by Prime Minister Kiel Starmer and President Donald Trump on Thursday, May 8, 2025, marks the first official trade agreement between the two countries under the current administration.

The biggest trade contract highlights: car and steel tariff reduction

One of the most well-known results is the reduction in US tariffs on UK cars, dropping from 27.5% to 10% for up to 100,000 vehicles per year. This confirms that “Jaguar Land Rover alone will save hundreds of millions of yen a year” as quoted in a press release from Gov.uk.

Tariffs on UK exports of aluminum to the US – formerly 25%, but now it has dropped to zero. The UK government estimates that this will save thousands of jobs in the UK steel industry. CNN’s Report.

Agriculture and ethanol access

Both sides have secured greater market access for agricultural products:

Each country has a tariff-free quota for 13,000 tonnes of beef exports
US ethanol tariffs will be removed
US Secretary of Agriculture Brook Rollins said the deal would “exponentially increase beef exports.” Guardian.

The UK government has argued that “there is no weakening of food standards” amid concerns about hormone-fed beef and chlorinated chickens. There are concerns about the use of ethanol in the US, but the National Farmers Union has carefully welcomed the deal.

The White House fact sheet outlined further regulations (or shortages).

Digital Tax: The UK Digital Services Tax has not changed.
Pharmaceuticals: There is no agreement yet, but future negotiations are expected.
Film Industry: Trump’s recent threat of 100% tariffs on foreign films remains uncontrollable in the deal.
Technology: The two countries will collaborate on future technologies, including biotechnology, life sciences, quantum computing, nuclear fusion, aerospace and space.
Customs and Procurement: Contracts streamline customs and increase access to U.S. government contracts to UK government contracts.

This transaction is described as a “framework” for wider talks in the future. It provides immediate relief to certain sectors, but some issues remain unresolved, such as tariffs and digital trade regulations on medicines.

Priority said, “This is a saved job, and the job won but not the job, and our team will continue to work on this contract.” Trump called the negotiations a “large deal,” suggesting that more agreements are expected by July 8th. CNN. ‘The United States faces more than 100 trade agreements before the 90-day tariffs end on July 8th.

What does the UK-UK trade agreement really mean to the UK?

Trade agreements focus primarily on work, tariffs and exports, but also open the door to deep geopolitical change. Some analysts have suggested that the UK will be positioned more firmly at the global stage, especially as tensions continue with Russia, and the Commission adopts a more confrontational stance.

Will this deal give the UK more negotiation power in future global conflicts? Or is there a risk that the UK will be overly dependent on Washington’s conditions? Nowadays, doors are open to more US cars, produce and US items that could potentially enter the UK market, so questions remain about the long-term impact on UK standards, environmental protection and consumer choices.