Updated May 08, 2025 at 11:45 AM ET
President Trump on Thursday announced a trade agreement with the United Kingdom on Thursday, his first such deal since his steep tariffs last month roiled stock markets.
Trump made the announcement sitting at the Resolute Desk, with British Prime Minister Kier Starmer joining by speakerphone.
Trump said it would give U.S. companies better market access for beef, ethanol, other farm products, chemicals, machinery and industrial products. The 10% U.S. tariff on imports of most British goods will remain.
"The final details are being written up in the coming weeks," Trump said. "We think just about everything's been approved."
Starmer said the agreement would boost trade and noted symbolism that it came 80 years to the day of Winston Churchill announcing victory in World War II. "There are no two countries that are closer than our two countries," Starmer said.
Commerce Secretary Howard Lutnick said the agreement would open up $5 billion in opportunities for U.S. exports.
It includes a break for imports of 100,000 British cars per year at the 10% tariff level, instead of the 25% level for imports from other countries. The United States will allow tariff-free imports of Rolls Royce engines and plane parts, Lutnick said, noting that there would be an announcement later on Thursday of $10 billion in purchases of Boeing planes.
Trump says it's the first deal of many
Trump's administration has engaged in a flurry of talks with trading partners since April 2, when Trump rolled out a 10% tariff on all imported goods, as well as what he called "reciprocal tariffs" — steep tariff walls aimed at punishing countries for their trading practices and volumes, and at drawing manufacturing to America.
The United Kingdom was not among the countries facing the big hikes. It has had baseline tariffs of 10% on its exports, as well as higher sectoral tariffs on exports of cars, steel and aluminum.
Trump retreated from his country-specific tariffs after markets plunged last month, pausing the hikes for 90 days, though he kept the 10% baseline in place, as well as those on autos, steel and aluminum — and extremely steep tariffs on China, where 145% tariffs have effectively stopped shipments. Economists have warned that the tariffs could lead to shortages of some goods and raise consumer prices for others.
Trump administration officials have said his moves brought countries to the table to talk about a range of trade issues, including Japan, South Korea, the United Kingdom, Vietnam and India. On Saturday, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet China's He Lifeng in Switzerland.
Asked what the UK would need to do to lift the 10% baseline tariff, Trump said it was "set" and indicated it was unlikely to change.
He said that other trade partners should not necessarily expect to be left with such a low tariff after their negotiations.
"That's a low number. They made a good deal. Many, some will be much higher, because they have massive trade surpluses," Trump said.
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