May 9, 2025. Today, the United States and the United Kingdom announced a historic trade deal, providing unprecedented access to U.K. markets while bolstering U.S. national security.
Key Points:
- The reciprocal tariff rate of 10%, as originally announced on Liberation Day, will remain. This trade deal will dramatically increase tariff revenue, bringing in billions of dollars in new revenue.
- The deal removes longstanding U.K. market barriers, creating a $5 billion opportunity for new exports for U.S. farmers, ranchers, and producers. These exports include ethanol, beef, fruits, vegetables, animal feed, tobacco, shellfish, chemicals, textiles, and more.
- The U.S.-U.K. trade deal will usher in a golden age of new opportunity for U.S. exporters, establishing a long-sought level playing field for American producers.
- Under the deal, U.K. car manufacturers are limited to a 100,000 per year vehicle quota at the reciprocal rate of 10%. Any additional vehicles each year will be subject to a 25% tariff.
- The trade deal furthers shared national security interests by creating a new union for steel and aluminum and establishing a secure supply chain for pharmaceutical products.
“This deal marks a new era in our relationship with the United Kingdom, our great ally,” said Secretary Lutnick. “And more importantly, this deal opens up an enormous multibillion-dollar export opportunity for hardworking Americans. While groundbreaking, this deal is the first of many as President Trump continues to deliver on his promises to the American people.”
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