London: UK Prime Minister Keir Starmer and US President Donald Trump have jointly announced a significant trade and economic agreement between the United Kingdom and the United States, which Starmer described as a 'fantastic, historic day.' The announcement comes as both nations celebrate the 80th anniversary of Victory in Europe (VE) Day, highlighting the enduring alliance between the two countries.
According to Anadolu Agency, the agreement was revealed in a phone call made by Starmer from the UK to the Oval Office, emphasizing the long-standing relationship between the two allies. Starmer noted the historical significance of the timing, recalling that 80 years ago, British Prime Minister Winston Churchill announced victory in Europe, underscoring the strength of the US-UK alliance both then and now. He emphasized the close ties in defense and intelligence sharing that have now been expanded to include trade and economic policy.
The new agreement is particularly notable for its impact on the tech industries of both nations. Starmer highlighted that the UK and the US are currently the only countries boasting $1 trillion tech sectors, suggesting that the new deal will serve as a strong foundation for future economic collaboration.
A key aspect of the agreement is the removal of a 25% tariff on UK steel and aluminum by the US, along with a reduction in car export tariffs from 27.5% to 10% for the first 100,000 vehicles exported annually from the UK to the US. In return, the UK has agreed to lift tariffs on US ethanol imports and provide reciprocal market access for US beef.
The agreement also involves plans to include beef, ethanol, and other agricultural products, with final details to be confirmed in the coming weeks. US Secretary of Commerce Howard Lutnick indicated that the deal could generate an additional $5 billion in opportunities for American exporters, while maintaining a baseline 10% tariff on most UK imports, with exemptions for Rolls-Royce engines.
President Trump praised the negotiating efforts behind the deal and emphasized the inclusion of American chemicals and machinery in the agreement. He described the pact as more than just a trade deal, framing it as a move towards economic security alignment between the US and the UK, which he termed a 'big economic security blanket.'
While some technical details remain to be finalized, Trump confirmed that the core elements of the agreement have been settled, marking a new chapter in US-UK economic relations.