US President Donald Trump announced a “full and comprehensive” trade agreement between the US and the UK on Thursday, 8 May 2025.

“The agreement with the UK is a full and comprehensive one that will cement the relationship between the US and the UK for many years to come. Because of our long-time history and allegiance together, it is a great honor to have the UK as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!” Trump said on Truth Social. 

The agreement is limited and keeps Trump’s 10% tariffs on British exports, slightly expands agricultural access for both countries, and reduces US duties on British car exports. The trade deal also significantly reduces average British tariffs on US goods from 5.1% to 1.8%.

This is the first of many tariff-lowering deals Trump plans to secure after disrupting global trade with steep new import taxes to reduce a USD 1.2 trillion US goods trade deficit. Trump also praised the deal in the Oval Office with Starmer on speakerphone.

“This is a really fantastic, historic day. This is going to boost trade between and across our countries, it’s going to not only protect jobs, but create jobs, opening market access, ” UK Prime Minister Keir Starmer said. 

In April, Trump imposed duties of up to 50% on goods from 57 trading partners, including the EU, but paused them to allow negotiations until 9 July 2025. He also introduced new 25% tariffs on auto imports, ended all steel and aluminium exemptions, and launched tariff probes on pharmaceuticals, copper, lumber, and semiconductors.

Earlier, the European Union may impose EUR 95 billion (USD 108 billion) in tariffs on US exports if trade talks with the Trump administration stall. The proposed tariffs target industrial goods like Boeing aircraft, US cars, and bourbon, which were previously excluded from the list.