President Trump and United Kingdom Prime Minister Keir Starmer have signed the U.S.-UK trade deal announced last month, although the two countries continue to negotiate terms for steel and aluminum.
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Under the deal, the U.S. will maintain its 10% baseline tariff on UK imports and charge a 10% duty, down from 27.5% for the first 100,000 imported vehicles per year. In exchange, the U.S. will be able to increase exports of beef, ethanol, and agricultural products to the UK. The UK has also agreed to reduce or remove various non-tariff trade barriers.
U.S.-UK Fail to Reach Steel and Aluminum Agreement
Still, the two sides continue to negotiate the terms for steel and aluminum imports to the U.S. The initial agreement provided for a 0% steel and aluminum tariff, down from 25%. If the discussions go well, the U.S. will “promptly construct a quota at most-favored-nation rates for steel and aluminum articles and certain derivative steel and aluminum articles.” Negotiations for imported UK pharmaceutical products remain on the table as well.
In 2024, the U.S. exported $79.9 billion of goods to the UK and imported $68.1 billion of goods, resulting in a goods trade surplus of $11.9 billion.
The S&P 500 (SPX) has shrugged off the news given that the deal was previously announced while the signing failed to show any new developments. The benchmark index is down by 0.27% today.
