May 2025

Last week, President Donald J. Trump and U.K. Prime Minister Keir Starmer announced a landmark trade agreement that redefined the U.S.-U.K. economic relationship. The Economic Prosperity Deal opens the U.K market to American exporters on a broad scale, reducing longstanding non-tariff barriers and projecting over $5 billion in new export opportunities across key sectors. Agriculture stands out with an immediate lift, including $700 million in ethanol and $250 million in beef and related agricultural products. The deal also includes measures to streamline Customs procedures and improve U.S. access to the U.K.’s procurement market.

The automotive provisions introduce a two-tiered tariff structure. A 10 percent reciprocal rate applies to the first 100,000 U.K.-manufactured vehicles imported into the United States annually, while any additional vehicles face a 25 percent rate. Steel and aluminum trade tensions are being addressed through planned negotiations aimed at replacing Section 232 tariffs with a more balanced framework. The agreement also establishes commitments in areas such as intellectual property rights, labor practices, and environmental protections. It maintains the 10 percent reciprocal tariff imposed by the United States on April 2, known as Liberation Day, signaling a continued focus on reciprocal trade enforcement.

This agreement reflects a strategic shift toward rebalanced trade and greater economic certainty. For U.S. businesses, it is more than a diplomatic milestone—it serves as a prompt to evaluate and act on new opportunities. Exporters in agriculture, automotive, and other key industries now have a clearer path to growth in the U.K. market. As this new phase in U.S.-U.K. trade takes shape, the message is clear: American producers are entering a more competitive and structured global marketplace.