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USTR Fact Sheet: U.S.-UK Reach Historic Trade Deal

ACHIEVING RECIPROCAL TRADE: Today, President Donald J. Trump and Prime Minister Keir Starmer announced a historic trade deal, providing American companies unprecedented access to the UK market while bolstering U.S. national security.

  • This agreement in principle provides significant expansion in U.S. market access in the UK, creating a $5 billion opportunity for new exports U.S. stakeholders, including U.S. farmers, ranchers, and producers.
    • This includes more than $700 million in ethanol exports and $250 million in other agricultural products, like beef.
    • It commits the countries to work together to enhance industrial and agricultural market access.
    • It will ensure streamlined customs procedures for U.S. exports.
    • It commits the countries to work to develop high-standard commitments in the areas of intellectual property, labor, and environment.
    • It commits the countries to negotiate an ambitious set of digital trade provisions.
    • It maximizes the competitiveness and secures the supply chain of U.S. aerospace manufacturers through preferential access to high-quality UK aerospace components.
    • It provides a secure supply chain for pharmaceutical products.
  • This U.S.-UK trade deal will usher in a golden age of new opportunity for U.S. exporters and level the playing field for American producers.

A FRAMEWORK TO BOLSTER ECONOMIC SECURITY: Today’s deal breaks historic ground on economic security, turning the Special Relationship into an unprecedented economic security alliance.

  • The agreement will close loopholes in the UK’s government procurement market that harm U.S. and UK firms. As parties to the Government Procurement Agreement (GPA), both countries give each other preferential procurement access to which other countries are not entitled. This deal protects that access from unfair competition by countries that are not party to the GPA.
  • The United States will agree to an alternative arrangement for the Section 232 tariffs on UK autos.
    • Under the deal, the first 100,000 vehicles imported into the United States by UK car manufacturers each year are subject to an all-in rate of 10% and any additional vehicles each year are subject to 25% rates on top of the Most Favored Nation tariff.
  • The United States also recognizes the economic security measures taken by the UK to combat global steel excess capacity and will negotiate an alternative arrangement to the Section 232 tariffs on steel and aluminum. This deal creates a new trading relationship for steel and aluminum between our countries.
  • The United States and the UK agreed to cooperate on the effective use of investment security measures, export controls, and ICT vendor security, building on our current levels of close alignment on trade and investment security measures.

MORE WORK TO BE DONE: Going forward, both sides will continue to work as they finalize the specifics of today’s deal. This will include finalizing provisions on digital trade, intellectual property, labor, environment, and standards, including automotive standards.

  • The United States is disappointed that the UK was unwilling to agree to fully address its discriminatory Digital Services Tax (DST). It is discriminatory, unjustified, and should be removed promptly.