Strong US-UK Relationship:

President Donald Trump and Prime Minister Keir Starmer underlined the "special relationship" between the US and the UK, based on shared values, culture, and language.

Key Trade Deal Announced:

• A sector-specific trade deal (not a full free-trade agreement) was rapidly negotiated.

• Focus areas include agriculture, automobiles, aluminium, and steel.

Main Elements of the Deal:

• Steel and Aluminium:

o The US removes a 25% tariff on UK steel and aluminium.

o Important for UK products containing these metals, though direct exports are relatively small (£370 million in 2024).

• Agriculture:

o Increased US beef and ethanol exports to the UK, fast-tracked through customs.

o Addresses historical restrictions linked to growth hormone concerns.

• Automobiles:

o Tariffs on UK car exports to the US cut from 27.5% to 10% for up to 100,000 vehicles annually.

o Critical for the UK auto industry, with US-bound car exports valued at £9 billion in 2024.

Impact:

• The deal is expected to protect thousands of skilled jobs in the UK, particularly in the steel and automotive sectors.

• Seen as a major win for UK carmakers like Jaguar Land Rover and Aston Martin.

Trade Balance Context:

• Trump's tariff strategy is aimed at reducing trade deficits.

• US data shows a goods surplus with the UK ($79.9bn exports vs. $68.1bn imports in 2024).

• UK data suggests a small UK surplus, indicating differences in how each country measures trade flows.

Next Steps:

• Trump hinted at "many other deals" currently in advanced negotiation stages.

• A full free-trade agreement would still require Congressional approval.