The United States and the United Kingdom have reached a sweeping $6 billion trade agreement that includes the removal of U.S. tariffs on British steel and aluminum, along with significant reductions in tariffs on U.K. automobile exports and a major aircraft procurement deal.
As part of the deal, the U.S. will eliminate 25% tariffs on British steel and aluminum imports, originally imposed on March 12 under former President Donald Trump's global tariff policy. That policy aimed to protect U.S. steel producers from global overcapacity and steel dumping practices.
“This deal worked because the U.S. blew up the whole international trade system,” said former President Trump, referencing his administration’s push for universal reciprocal tariffs. “They’ve been trying to get this deal done for 25 years with the U.K., and it took us 45 days,” he added. “The U.K. was very closed to products from the U.S., and now it’s open.”
U.K. Prime Minister Keir Starmer praised the deal, stating it would “protect British businesses and save thousands of jobs in Britain.”
One major element of the agreement is the nationalization of British Steel, a move expected to involve significant public investment. According to experts, the decision could secure the future of the Scunthorpe Steelworks, the last U.K. facility capable of producing virgin steel. The U.K. government is expected to take over British Steel’s assets, liabilities, and operations, ensuring its viability amid global steel market challenges.
Other key components of the deal include:
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A $10 billion Boeing procurement agreement for aircraft parts with the U.K.
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A reduction of auto tariffs from 25% to 10% on up to 100,000 U.K. vehicles annually.
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Steel import quotas from the U.K. will be eased, though exact figures have not yet been disclosed.
The agreement is seen as a major political and economic milestone following years of stalled negotiations. It also comes ahead of a critical weekend meeting between U.S. officials, including Treasury Secretary Scott Bessent, and Chinese counterparts, aimed at de-escalating trade tensions over existing 145% tariffs on Chinese goods.
“They can’t get any higher,” Trump said of the China tariffs. “I think we’re going to have a very good weekend.”
VietnamSteel by Hoa Sen Group
