President Donald Trump said Thursday that the US and the UK have reached a “breakthrough” trade deal.
“This morning, I’m thrilled to announce that we have reached a breakthrough trade deal with the United Kingdom,” Trump said at the White House.
He said the deal with the UK is the first in a series of trade agreements that his administration has been negotiating over the past four weeks.
“With this deal, the UK joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade,” he added.
The UK will reduce numerous non-tariff barriers that “unfairly discriminated against American products,” Trump said.
The deal will involve billions of dollars of American exports, including American beef, ethanol and other agricultural products, he said. “They’ll also be fast-tracking American goods through their customs process, so our exports go to a very, very quick form of approval, and there won’t be any red tape.”
Trump said everyone wants to make a deal with the US. “And we’re doing that, and we’re making, we’re going to make fair deals. I’m just honored that this was the first one,” he added.
‘REALLY FANTASTIC, HISTORIC DAY’: UK PREMIER
UK Prime Minister Keir Starmer said it is a “really fantastic, historic day” in which the countries can announce this deal.
“And I think it’s a real tribute to the history that we have of working so closely together. … Really important deal. This is going to boost trade between and across our countries. It’s going to not only protect jobs, but create jobs, opening market access,” he said virtually.
Starmer said US tariff cuts will take effect “as soon as possible.”
US Secretary of Commerce Howard Lutnick, who was standing next to Trump, said the UK market is “huge.”
Lutnick said the deal has opened up new market access, including ethanol, beef and “virtually all products” from US farmers.
“That will add $5 billion of opportunity to American exporters,” he said. “And we still have a 10% tariff on which will produce $6 billion of revenue for the United States.”
On automobile imports, Lutnick said Rolls Royce engines will be tariff-free.
It has been agreed that the UK will be able to send 100,000 cars into the US on the original 10% baseline tariff, and Rolls Royce engines and parts for airplanes can be exported from the UK to the US tariff free, he said.