U.S.-U.K. Trade Pact Stalls as Culture Clash and Technical Disputes Undermine Trump's Global Strategy

The U.S.-U.K. trade deal, hailed as a breakthrough by President Donald Trump and British Prime Minister Keir Starmer, is facing mounting challenges as negotiators struggle to finalize the agreement's intricate details. The deal, announced in May 2025 with a celebratory phone call between the two leaders, aims to reduce tariffs on cars, steel, and aluminum while cutting non-tariff barriers for American products, according to a Times article. However, U.S. officials have privately warned that the agreement is "in danger of going off the rails" due to delays in resolving technical disputes and a perceived "culture clash" between the two sides, the Times reported.

The deal's initial terms—such as slashing U.S. tariffs on British cars from 27.5% to 10% for the first 100,000 vehicles annually and eliminating tariffs on steel and aluminum—were celebrated as historic. Yet, unresolved issues, including supply chain rules and exemptions for British-made jet engines, have stalled progress, the Times said. U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick have been criticized for their inability to align on strategy, further complicating negotiations, according to the Times. British officials, meanwhile, have pushed back against U.S. demands to relax product standards, arguing that such concessions could undermine domestic industries.

The U.S. trade team's broader agenda, however, is not limited to the U.K. In parallel, Trump and Chinese President Xi Jinping are set to finalize a trade framework agreement ahead of their meeting in South Korea, with the U.S. Treasury anticipating an extension of the tariff truce and a resumption of Chinese purchases of U.S. soybeans, according to a Guardian report. This development follows a contentious probe into whether China violated the terms of Trump's first-term trade deal, which the president has hinted he may drop if talks with Xi go smoothly, Bloomberg reported.

Meanwhile, Trump's Asia tour, which includes the ASEAN summit in Malaysia, underscores the administration's focus on reshaping global trade dynamics. The U.S. has imposed tariffs of 10%–40% on Southeast Asian imports, with ASEAN nations seeking to formalize deals to mitigate the impact, Rappler reported. Thailand, for instance, has seen its trade surplus widen to $1.28 billion in September 2025, driven by a 19% year-on-year surge in exports. However, the region remains wary of U.S. protectionism, as evidenced by Trump's abrupt cancellation of Canada-U.S. trade talks over a controversial ad quoting Ronald Reagan's anti-tariff stance, shown in a CBC video.

The U.K.-U.S. deal, if finalized, could serve as a model for Trump's global trade strategy, balancing retaliatory tariffs with selective concessions. British officials have emphasized that the agreement includes reciprocal benefits, such as increased U.S. ethanol imports and expanded access for American pharmaceuticals in the NHS, the Times reported. Yet, with U.S. negotiators still awaiting final texts from London and tensions simmering over issues like whisky tariffs, the path to a signed agreement remains uncertain, the Times added.

As Trump navigates these negotiations, his administration's approach reflects a broader shift toward bilateralism, prioritizing U.S. economic interests while managing geopolitical tensions. The coming months will test whether these efforts can translate into durable agreements—or further destabilize the global trade order.