U.S. Strikes Trade Deal with Britain, Marking First Victory for Trump’s Tariff Policy: Here’s What to Know

The United States and the United Kingdom reached a trade deal to lower tariffs on some goods on Thursday, as President Donald Trump announced, marking the first victory since the reciprocal tariff shock last month.

“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,” Trump said in a Truth Social post.

He added, “Many other deals, which are in serious stages of negotiation, to follow!”

However, the deal is limited in scope. The U.K. will cut the digital sales tax targeting U.S. tech giants, along with reductions to its 10% tariff on car imports and levies on meat and shellfish products. For example, the tariff on beef will close to zero.

In exchange, the U.K. will benefit from reductions in tariffs on auto and steel exports to the U.S., which currently face a 25% tariff. Domestic carmakers will receive a quota of 100,000 vehicles that can be exported at a reduced tariff rate. However, the 10% baseline tariff on universal goods will remain in effect, necessitating further negotiations in other areas.

UK officials have also been talking to the Trump team to try to avert future U.S. tariffs on products including pharmaceuticals and aerospace. These parts are still unclear.

“The United States is an indispensable ally for both our economic and national security. Talks on a deal between our countries have been continuing at pace, and the Prime Minister will provide an update later today,” a spokesperson for the office of U.K. Prime Minister Keir Starmer said on Thursday.

Trump administration officials have also been in thorough talks with Japan, Vietnam, India, and other major trading partners. Treasury Secretary Bessent will negotiate with Chinese officials on trade this Saturday in Switzerland.

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