Trump keeps 10% tariffs on UK but cuts taxes on British autos, steel and aluminum with trade deal
WASHINGTON — President Donald Trump agreed Thursday to cut tariffs on U.K. autos, steel and aluminum in a planned trade deal but played down the possibility of other nations getting similarly favorable terms on his import taxes, which are roiling the global economy.
Under the framework agreement, the United Kingdom is to buy more American beef and ethanol and streamline its customs process for goods from the United States. But Trump’s baseline 10 percent tariffs against British goods are to stay in place, and the Republican president suggested that even higher import taxes would be charged on other countries trying to reach deals with the U.S.
“That’s a low number,” Trump said of the U.K.’s 10 percent tariff rate, adding that other countries would face higher tariff rates in their deals because the U.S. runs trade deficits with them and “in many cases they didn’t treat us right.”
The announcement provided a political victory for U.K. Prime Minister Keir Starmer and offered a degree of validation for Trump’s claims that his turbulent approach on trade may be able to rebalance the global economy on his preferred terms. While the deal should improve Britain’s situation relative to when Trump began imposing new tariffs, the world economy is still mired in the confusion and uncertainty unleashed by the president’s import taxes. The deal with the U.K. would be a resonant but small step toward greater clarity given that Britain represents a fraction of U.S. imports.
The U.S. president talked up the framework to reporters in the Oval Office, although the fine print remains in flux.
“In the coming weeks, we’ll have it all very conclusive,” Trump said.
The president said the agreement would lead to more beef and ethanol exports to the U.K., and streamline the processing of U.S. goods through customs. Commerce Secretary Howard Lutnick said the baseline 10 percent tariffs would stay in place and said an unspecified British company would be announcing the purchase of $10 billion in aircraft from Boeing.
Cars, steel and olive oil
U.K. officials said Trump’s auto tariffs would go from 27.5 percent to 10 percent on a quota of 100,000 vehicles and the import taxes on steel and aluminum would go from 25 percent to zero. Starmer said Britain would preserve its health and safety standards on food products.
The U.K. government also said it would also reduce tariffs on 2,500 U.S. products such as olive oil, wine and sports equipment, bringing down the average tariff rate 1.8 percent.
Starmer, speaking over the phone to Trump while reporters listened in, stressed the importance of the relationship between the two countries as the anniversary of the Allies’ World War II victory in Europe was being commemorated.
“To be able to announce this great deal, on the same day 80 years forward, almost at the same hour,” Starmer said, “I think is incredibly important and makes this truly historic.”
Starmer later spoke to workers at a Jaguar Land Rover plant and promoted the deal, which he said would protect thousands of auto jobs. He told the workers that “this is just the start,” saying “we are hammering out further details to reduce barriers to trade with the United States and across the world.”