Key points of the UK-US trade deal explained
The agreement is the first of its kind struck by the US since President Donald Trump came to power in January.
It offers the UK relief from tariffs on cars and steel, in exchange for giving America's agricultural industry greater access to British markets.
Here, the PA news agency outlines some of the key points of the deal.
– Steel and aluminium tariffs
The US has removed the 25% tariff rate on UK steel and aluminium exports, reducing the trade barrier for these goods to zero.
Under the plan, the UK will 'promptly' begin work to meet the United States' requirements for securing supply chains of steel and aluminium products.
The agreement will offer a reprieve to Britain's steel industry, which only weeks ago was on the verge of collapse.
– Car tariffs
American tariffs on British cars fall to 10% for the first 100,000 vehicles exported to the US. The parts needed for those cars will also receive special trade treatment.
Mr Trump had set the tariff rate on car exports to the US at 27.5%.
British car makers were also understood to have been intensely worried about the impact tariffs on their industry would have had if left unchecked.
– Other tariffs
A 10% baseline tariff on most goods, described by Mr Trump as a 'reciprocal' tariff, remains in place.
Sir Keir Starmer said the US and UK were 'hammering out further details to reduce barriers to trade' in other areas impacted by tariffs.
Talks over lowering the reciprocal tariffs are understood to be ongoing, but there is no deadline on how long they may continue.
The UK will also get preferential treatment in any further tariffs on national security grounds, Mr Trump announced as part of his drive to protect US business.
– Pharmaceuticals
Although British pharmaceuticals are not subject to tariffs from the US, Mr Trump has mulled over the idea of imposing trade levies on global imports from the industry.
Pending the results of compliance investigations, the countries have pledged to 'negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients'.
The UK also promised it would endeavour to 'improve the overall environment' for pharmaceutical companies based there.
– Agriculture
Both the US and UK's agriculture sectors will gain new access to one another's markets under the deal.
UK beef farmers will be allowed access to the US market for the first time, joining a group of select countries such as Australia which have a similar arrangement.
British farmers have been given a tariff-free quota for 13,000 metric tonnes.
US farmers will, in turn, be granted new access to the UK, but Sir Keir insisted the Government had stuck to its 'red lines' on farming standards.
Additionally, the UK will remove tariffs on 1.4 billion litres of ethanol, used to produce beer, which comes from the US.
– What non-tariff measures are in the deal?
Under the plan, the US and UK committed to working toward economic security by coordinating to 'address non-market policies of third countries'.
They also pledged closer cooperation on keeping investments, exports and tech vendors secure by building on already closely aligned trade and investment security measures.
The US and UK have agreed to negotiate 'ambitious' provisions for digital trades, a move which could impact services like online banking, financial tech, insurance or other industries that rely heavily on digital infrastructure.
Additionally, both sides agreed to better cooperate in tackling duty tax evasions on imports and exports.
– What is not in the deal?
There is nothing in the deal on US access to the NHS. Nor is there anything on concessions on a 2% tax on US big tech companies.
Business Secretary Jonathan Reynolds told reporters: 'Just to be absolutely clear about what is not in this agreement. There is nothing in this agreement in relation to online harms or the Online Safety Act. There's nothing in this agreement in relation to digital services tax. Nothing in the agreement in relation to the NHS.'
– The politics
The Prime Minister appears to have defied his political opponents who called for him to take a harder stance with the president.
'I know people along the way were urging me to walk away, to descend in a different kind of relationship. We didn't. We did the hard yards. We stayed in the room. I'm really pleased to say to the workforce here and through them to the country, how important I think this deal is,' Sir Keir said following the deal.
Lib Dem leader Sir Ed Davey was among those who called for a more muscular approach with Mr Trump.
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The Guardian
16 minutes ago
- The Guardian
Tuesday briefing: What last night's meeting between Trump, Zelenskyy and Europe means for the war in Ukraine
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The Guardian
an hour ago
- The Guardian
Four key takeaways from Trump's White House summit on Ukraine
Donald Trump has hosted leaders from across Europe as part of a flurry of diplomacy to find a path to peace in Ukraine. Coming just days after a disappointing summit with Russian president Vladimir Putin in Alaska, the pressure was on to make headway in a years-long conflict that the US president once said he could solve in 24 hours. Below are some key points arising from the US president's range of bilateral and multilateral talks with the leaders of Ukraine, Germany, Britain, France, Italy, Finland, the European Union and Nato. A bilateral meeting between Volodymyr Zelenskyy and Vladimir Putin is something the Russian president has always resisted, urging for a list of preconditions to be met first, but the possibility may now be nearer than ever. Donald Trump said after the White House talks: 'I called President Putin, and began the arrangements for a meeting, at a location to be determined, between President Putin and President Zelenskyy. After that meeting takes place, we will have a Trilat, which would be the two Presidents, plus myself.' According to German chancellor Friedrich Merz, Putin told Trump in a call during Monday's White House meeting that he was ready to meet Zelenskyy 'within the next two weeks'. For his part, Zelenskyy reiterated on Monday that he was ready for talks with Putin. Both Merz and the Finnish president, Alexander Stubbs, offered some pointed language on the topic, saying in separate press conferences that it remained to be seen if the Russian president had the 'courage' to go ahead with the meeting. Stubbs said: 'Putin is rarely to be trusted.' So far, Kremlin aide Yuri Ushakov has said only that Putin was open to the 'idea' of such direct talks. Although Trump poured cold water on the importance of a ceasefire, he did offer hope on US involvement in helping guarantee Ukraine's future security. After welcoming Zelenskyy to the White House, he said: 'When it comes to security, there's going to be a lot of help', even if European countries need to be 'a first line of defence'. Later, Trump said in a post that these guarantees would be 'coordinated' with the US. On Monday morning, Zelenskyy described security guarantees as 'a key issue, a starting point towards ending the war' and appreciated Trump's indication that the US was ready to be part of that guarantee. Zelenskyy said those guarantees would be 'formalised in some way in the next week or 10 days', which can prove to be a long time when it comes to diplomacy involving Trump's White House. The US president's desire for a Nobel peace prize is well known – who can forget the 'Trump Route for International Peace and Prosperity' established as part of a peace deal between Armenia and Azerbaijan this month – and it seemed clearly in his mind during his Oval Office meeting with Zelenskyy. The 'peacemaker-in-chief' said he had ended six wars since he became president, with his administration claiming to have helped settle the conflicts between Israel and Iran, the Democratic Republic of Congo and Rwanda, Cambodia and Thailand, India and Pakistan, Serbia and Kosovo, and Egypt and Ethiopia. But, as Andrew Roth explains, it is a claim that stretches the realities on the ground. Trump's approach to foreign crises is peppered with efforts to find a way to establish economic opportunity for US industry, and Ukraine may be no different if a deal is finalised. Zelenskyy has, after all, previously had to negotiate the US president's desire for Ukraine's critical minerals as part of his rivalry with China. On Monday, Zelenskyy indicated the price of obtaining security guarantees from the US included a pledge to buy $90bn of US weapons, primarily aircraft and air defence systems. He added that the US would also buy into Ukraine's drone program, an area in which it has made significant strides since Russia's full-scale invasion began. Earlier, the Financial Times reported that the drone deal was worth $50bn.
