Overview

• The agreement marks the first bilateral trade deal since the U.S. imposed sweeping tariffs on April 2, signaling initial steps toward trade de-escalation.
• British auto exports to the U.S. will now face a reduced 10% tariff on the first 100,000 vehicles, down from 27.5%, benefiting luxury carmakers like Rolls-Royce and Aston Martin.
• U.S. tariffs on British steel and aluminum have been eliminated, while the 10% baseline tariff on most other goods remains in place.
• The U.K. has agreed to open its market to an estimated $5 billion in U.S. exports, including ethanol, beef, and machinery, though detailed provisions are still being finalized.
• The deal is being described as a framework rather than a comprehensive agreement, with limited applicability as a model for future trade negotiations with other nations.