US President Donald Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement that decreases prohibitive US charges on British auto exports, modestly increases agricultural access for both nations, and maintains Trump's 10 percent tariffs on British exports.
After upending the global trading system with high new import levies intended to reduce a $1.2 trillion US goods trade deficit, Trump anticipates landing dozens of tariff-lowering agreements in the weeks ahead, including the "general terms" accord.
As US Treasury Secretary Scott Bessent and leading trade negotiator Jamieson Greer travel to Switzerland to begin talks with Chinese negotiators, Trump celebrated the agreement in the Oval Office while Starmer was patched in on a speaker phone.
He said that Britain "made a good deal" and that many other trading partners would wind up with far higher final tariffs due to their significant US trade surpluses, arguing against using the UK deal as a model for future discussions.
Trump put reciprocal charges of up to 50 percent on goods from 57 trading partners, including the European Union, in April.
He halted the penalties a few days later to give time for talks until July 9.
Along with ending all exemptions from steel and aluminum levies and imposing new 25 percent tariffs on vehicle imports, he also announced new tariff probes on semiconductors, copper, lumber, and pharmaceuticals. He added films to the list this week.
After the US president's frequently erratic policymaking upended international trade with both allies and foes, threatening to fuel inflation and send the US and global economy into recession, investors have been putting pressure on Trump's administration to reach agreements and defuse the tariff war.
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Resolving a virtual trade embargo between the US and China, where duties are 125 percent and 145 percent on each side, is Trump's largest obstacle.