Big Ticket Wins in the Historic US-UK Trade Deal: Agriculture, Autos, Steel, and a New Era of Partnership

May 15, 2025 – On May 8, the United States and the United Kingdom announced a landmark Economic Prosperity Deal—one that both sides hail as a transformative moment in the “special relationship.”  The agreement, unveiled on the 80th anniversary of Victory in Europe (VE) Day, represents a significant realignment in bilateral trade and industrial cooperation.                                                                                                                                                  Key Outcomes of the Agreement

1. Boost for U.S. Agricultural Exports
   American farmers will benefit from over $5 billion in new export opportunities, including:

• $700 million in ethanol exports
• $250 million in beef and other agricultural goods
• Removal of non-tariff barriers that previously restricted U.S. goods

2. Automotive Tariff Reductions
   U.S. tariffs on the first 100,000 UK-manufactured vehicles imported annually will drop from 27.5% to 10%. Additional units will face a 25% tariff. Prime Minister Starmer emphasized this breakthrough during a visit to Jaguar Land Rover, saying:

“This deal means that US tariffs will now be cut from 27.5% to 10% for 100,000 vehicles every year… To get that decrease was hugely important to me.”

3. Steel and Aluminum Relief
   The deal eliminates tariffs on British steel and aluminum, ending longstanding trade frictions. Starmer noted this move “will protect British businesses and save thousands of skilled, well-paid jobs.”
4. Life Sciences and Pharmaceutical Supply Chains
   The UK’s life sciences sector receives vital assurances, while the U.S. gains secure pharmaceutical supply chain access, reinforcing mutual health security.
5. Aerospace Collaboration
   U.S. aerospace manufacturers will benefit from preferential accessto high-quality UK components, strengthening bilateral industrial resilience.
6. Broader Market Access and Regulatory Alignment

• Streamlined customs for U.S. exports
• Expanded procurement opportunities in the UK
• Mutual commitments on labor, environment, and intellectual property

A Shared Vision for Economic Renewal

Starmer framed the agreement as a direct response to economic pressures and a vote of confidence in global partnerships:

“We are sending a message to the world that Britain is open for business… with the US today, India on Tuesday, and the EU next week.”

He also emphasized a new tone in global diplomacy:

“We don’t storm off, we stay in the room, and we negotiate… Acting in the national interest.”

President Trump echoed similar sentiments, calling the deal “a great deal for America” that ensures “unprecedented access to UK markets” and levels the playing field for American producers.

Looking Ahead

This agreement represents more than a list of tariff changes—it is a political signal of stability and renewal. As Starmer concluded:

“Jobs saved. Jobs won. But not job done.”

Both leaders hinted at further negotiations to deepen cooperation in technology, services, and innovation—potentially paving the way for a comprehensive 21st-century transatlantic trade framework.

Fittingly, the deal was sealed on VE Day—a symbolic nod to 80 years of allied partnership, now reinforced by economic prosperity as a defining pillar of that relationship.