In a significant step on trade relations, U.S. President Donald Trump and British Prime Minister Keir Starmer jointly revealed a “breakthrough deal” on Thursday.
The new agreement maintains a 10% U.S. tariff on British imports but sees Britain lowering its tariffs on American goods from 5.1% to 1.8%. Moreover, the UK pledged to expand access for U.S. exports.
Announced from the Oval Office, this marks the first major trade pact since President Trump reignited widespread reciprocal tariff disputes after resuming office in January 2025. The UK becomes the first nation to finalize an agreement with Washington following the fresh 10% based tariff and global reciprocal tariffs the U.S. enacted in April.
Despite the fanfare, several details of the deal remain undisclosed, and no official documents were signed during the announcement. “The final details are being written up,” Trump stated. He added that a full detail of the deal should be revealed in the coming weeks.
As part of the agreement, the United Kingdom will purchase $10 billion worth of Boeing aircraft, according to U.S. Commerce Secretary Howard Lutnick, who spoke at the White House event. Lutnick referred to the acquisition as a private-sector transaction, declining to reveal the airline involved and indicating that the company would announce specifics at a later date.
The Trump administration’s trade policy remains assertive, with the U.S. applying 25% tariffs on autos, steel, and aluminum, including imports from Canada and Mexico, and imposing a steep 145% tariff on Chinese goods. Looking ahead, U.S. and Chinese delegates are expected to meet for further talks in Switzerland this Saturday.
