- 10% US tariff on UK imports sustained, strategic impact on markets.
- First 100,000 UK vehicles taxed at 10% annually.
- Rolls Royce engines exempt, US-UK relationship strengthened.
US-UK trade agreement retains 10% tariff, impacting auto imports and cementing new economic relations.
Donald Trump announces a new trade agreement with the UK, which retains a 10% tariff on imports, emphasizing strategic economic collaboration.
Trump’s Tariff Strategy to Generate $6 Billion Annually
The US-UK trade agreement announced on May 8, 2025, keeps the 10% US tariff on UK imports. Key figures include US President Donald Trump and UK Prime Minister Keir Starmer. The deal, described as “very special,” anticipates raising $6 billion for the US. Howard Lutnick, US Commerce Secretary, noted significant financial benefits from the tariff. The agreement also solidifies the UK’s imports structure, specifically the automotive sector, with the first 100,000 vehicles subject to the 10% tariff annually. Vehicles beyond this quota will encounter a 25% rate, though Rolls Royce engines stand exempted.
UK Prime Minister Starmer highlighted the deal’s potential to boost trade and protect jobs. The retention of tariffs leaves exporters facing higher levies than previously experienced, according to Jonathan Portes, economics professor at King’s College, London. Deutsche Bank analyst Jim Reid views this as a framework rather than a full trade deal. Market watchers observed strategic shifts, seeing the accord as possibly initiating broader trade policy discussions.
“It’s going to be something very special for the U.K. and special for the United States,” Donald Trump stated.
The agreement reflects Trump’s broader trade strategy following his “Liberation Day” tariffs imposed in April 2025, establishing a precedent for new deals. Many industries anticipate changes in market dynamics and import strategies based on this agreement’s outcomes. The trade framework could influence future negotiations, shaping both regulatory landscapes and cross-Atlantic economic relations.
Source: https://coincu.com/336442-us-uk-trade-agreement-tariff-2/