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3h ago

U.S. and U.K. Announce Framework Trade Agreement, Lowering Key Tariffs

The deal reduces auto, steel, and aluminum tariffs but keeps a 10% baseline duty as final terms remain under negotiation.

President Donald Trump speaks alongside British ambassador to the United States Peter Mandelson after making a trade announcement with the United Kingdom on Thursday.
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Overview

  • The U.S.-U.K. framework agreement marks the first trade deal since sweeping tariffs were enacted in April, with final details still being drafted.
  • Under the deal, tariffs on U.K. car exports to the U.S. are reduced from 27.5% to 10% for the first 100,000 vehicles annually.
  • The U.S. eliminates 25% tariffs on U.K. steel and aluminum exports, while maintaining a 10% baseline tariff on other British goods.
  • The agreement grants reciprocal tariff-free quotas for U.K. beef and expands U.S. ethanol exports by $700 million annually.
  • Analysts caution that while the deal provides temporary relief, broader global trade negotiations, including upcoming U.S.-China talks, face significant challenges.