On May 8, 2025, Donald Trump announced a new trade agreement between the US and the UK that maintains a 10% tariff on imports from the UK.
Announcement of the Trade Agreement
The agreement was announced by Donald Trump in Washington, D.C. It is seen as a significant step in the trade relations between the two countries. The tariff was established as part of an earlier trading strategy aimed at generating $6 billion in revenue for the US.
Revenue Indicators and Exemptions
The 10% tariff will apply to imports of 100,000 vehicles from UK manufacturers, with any surplus subject to a 25% tariff. Rolls Royce engines are exempt. Howard Lutnick, US Secretary of Commerce, stated, "This deal will raise $6 billion in revenue for the US."
Future Negotiations Outlook
Coincu analysts highlight the potential effect of this agreement on regulatory trends and economic shifts within the transatlantic corridor. UK Prime Minister Keir Starmer called the day historic, emphasizing strengthened bilateral relations. He remarked, "This is a historic day... a real tribute to the history that we have of working so closely together."
The US-UK trade agreement represents a significant step in international trade, impacting the economic relations of both countries.
