In a significant move, the White House announced the unveiling of the first UK trade deal since the introduction of a "reciprocal" tariff pause. The agreement aims to boost trade between the two nations, with a range of measures designed to increase exports, improve market access, and strengthen supply chains.
According to a fact sheet from the White House, the trade deal will see a 10% blanket U.S. tariff remain in place for UK imports. Additionally, tariffs on UK autos will be adjusted, with the first 100,000 vehicles imported from UK car manufacturers each year facing a 10% rate, and any additional vehicles subject to a 25% rate.
The agreement also creates a significant opportunity for U.S. farmers, ranchers, and producers, with over $5 billion in new exports expected. This includes more than $700 million in ethanol exports and $250 million in American beef and other agricultural products. Moreover, the deal commits both countries to working together to enhance industrial and agricultural market access, closing loopholes and increasing U.S. firms' competitiveness in the UK's procurement market.
The agreement also includes provisions to streamline customs procedures for U.S. exports, establish commitments on intellectual property, labor, and the environment, and secure the supply chain of U.S. aerospace manufacturers through preferential access to high-quality UK aerospace components. Furthermore, the deal creates a secure supply chain for pharmaceutical products and requires the U.S. to negotiate an "alternative arrangement to the Section 232 tariffs on steel and aluminum," including the creation of a "new trading union for steel and aluminum."