Trump OKs tariff cuts for United Kingdom, as trade talks continue

Negotiations for broader trade deal between UK and US still ongoing

The Trump administration's agreement with the U.K. announced Monday includes eliminating tariffs on aerospace imports, and lowering duties on autos to 10%. (Photo: Jim Allen/FreightWaves)

President Donald Trump and British Prime Minister Keir Starmer said on Monday they have agreed to ease tariffs on some goods from both countries amid ongoing negotiations for a broader trade deal.

The agreement announced on Monday includes slashing tariffs on aerospace imports from the U.K. to zero, which will take effect by the end of the month. 

The deal also lowers tariffs on auto imports from the U.K. to 10% on the first 100,000 vehicles, according to the White House. Previously vehicles imported from Great Britain faced a 27.5% duty.

Monday’s agreement also implements reciprocal market access on beef — with U.K. farmers given a quota for “13,000 metric tonnes” to the U.S.

Trump and Starmer initially announced the trade agreement between the two countries on May 8.

The agreement announced Monday does not include eliminating the 25% tariffs imposed on British steel and aluminum exports to the U.S.

The deal with the U.K. is the first and only deal Trump has established since his “Liberation Day” tariff announcement against all U.S. trading partners on April 2.

The Trump administration launched its broad “reciprocal” tariff plan for about 90 U.S. trade partners April 2, including a baseline 10% tariff on trade partners, as well as 25% tariffs on certain imported vehicles and auto parts.

The reciprocal tariffs were paused for most nations until July 8.

The agreement announced on Monday will create jobs in both the U.S. and U.K., Trump said.

“It’s a fair deal for both and it’s going to produce a lot of jobs, a lot of income,” Trump told reporters at the Group of 7 summit in Kananaskis, Canada, according to NBC News

Starmer said the agreement meant “a very good day for both our countries.” 

The UK is one of the few major countries the U.S. doesn’t run a trade deficit with. In 2024, the U.S. had a trade surplus of nearly $12 billion with the UK.

The UK was the ninth ranked international trade partner of the U.S. in 2024, totaling $148 billion in two-way trade.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com