Trump Announces Trade Deal with the United Kingdom

US President Donald Trump announced on TruthSocial what he described as a “historic” trade agreement with the United Kingdom, calling it the first “Fair, Open, and Reciprocal Trade Deal” since what he termed “Liberation Day.”

The deal will generate US$6 billion in external revenue through the imposition of 10% tariffs on select imports, up from a previous average of 3.4%. In turn, US exporters, particularly farmers and ranchers, will gain US$5 billion in new market access to the United Kingdom for products including ethanol, beef, cereal, fruits, vegetables, animal feed, tobacco, soft drinks, shellfish, textiles, chemicals, and machinery.

According to an image shared by Trump, the United States will now impose a 10% tariff — up from 3.4% — while UK tariffs have been reduced from 5.1% to 1.8%. This adjustment marks a notable divergence in approach, with the United States increasing its trade barriers while the United Kingdom simultaneously lowers them, a strategy Trump defends as a way to both protect US industries and generate government revenue.

“America is OPEN FOR BUSINESS. If you respect America and bring serious proposals to the table, many more deals like this will follow,” writes Trump.

In addition to economic benefits, Trump highlights the national security dimensions of the agreement. The deal includes the establishment of a joint Aluminum and Steel Trading Zone and a secure pharmaceutical supply chain between the two nations. These measures are being touted as safeguards against global supply disruptions and as steps toward deeper transatlantic industrial cooperation.

A spokesperson for UK Prime Minister Keir Starmer tells CNBC that they acknowledge the development, calling the United States “an indispensable ally for both our economic and national security.” The spokesperson noted that negotiations had been “continuing at pace” and that Prime Minister Starmer would provide a more detailed update later in the day.

Speaking from the Oval Office, US Commerce Secretary Howard Lutnick reinforces the administration’s message, calling the deal a game-changer for US exporters. “They have agreed to open their markets and that will add US$5 billion of opportunity to American exporters,” says Lutnick. He adds that the 10% tariff would remain in place and emphasizes that UK workers and industries would not be negatively affected.

Lutnick also reveals that under the deal, the United Kingdom will be permitted to export up to 100,000 cars to the United States annually, each subject to the new 10% tariff.