Washington: President Donald Trump said Thursday that the US and the UK have reached a "breakthrough" trade deal. "This morning, I'm thrilled to announce that we have reached a breakthrough trade deal with the United Kingdom," Trump said at the White House.
According to Anadolu Agency, the deal with the UK is the first in a series of trade agreements that Trump's administration has been negotiating over the past four weeks. Trump emphasized that the UK joins the United States in affirming that reciprocity and fairness are essential and vital principles of international trade. The UK will reduce numerous non-tariff barriers that previously discriminated against American products.
The agreement will lead to billions of dollars in American exports, including beef, ethanol, and other agricultural products. Trump highlighted that American goods will be fast-tracked through the UK's customs process, minimizing approval times and eliminating bureaucratic obstacles.
Trump expressed that numerous countries are eager to make deals with the US, and he is committed to ensuring they are fair. He expressed his honor in having this agreement be the first among several others in progress.
UK Prime Minister Keir Starmer described the day as "really fantastic" and historic, emphasizing the importance of the deal in boosting trade and creating jobs. He underscored the significance of the US tariff cuts, which are set to take effect swiftly.
US Secretary of Commerce Howard Lutnick, present at the announcement, described the UK market as significant. The deal is expected to open new market access for US agricultural products, potentially adding $5 billion in opportunities for American exporters, while maintaining a 10% tariff that could generate $6 billion in revenue for the US.
On the subject of automobile imports, Lutnick noted that Rolls Royce engines would be tariff-free. The agreement allows the UK to send 100,000 cars to the US under the original 10% baseline tariff, with Rolls Royce engines and airplane parts being exported to the US without tariffs.