U.S. President Donald Trump announced a trade framework with the U.K., hailing it as a “breakthrough” that will bring down barriers and expand market access for American imports.
“I’m thrilled to announce that we’ve reached a breakthrough trade deal with the United Kingdom,” Trump said May 8 in the Oval Office.
Trump said full details of the pact would still be negotiated over the coming weeks. But under the agreement, the U.K. would fast-track American goods through their customs process and reduce barriers on agricultural, chemical, energy and industrial exports.
“The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers,” Trump said.
The announcement is the first Trump made since imposing high tariffs on dozens of U.S. trading partners. The president later paused those duties temporarily in order to allow nations to reach agreements with the U.S.
“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,” said U.K. Prime Minister Keir Starmer, who dialed into the event by phone.
The British pact may provide clues for the shape of potential future agreements with other economies. The deal is limited in scope and keeps in place a 10% baseline tariff, according to people familiar with it, who spoke on condition of anonymity to discuss the terms.
With polls showing Americans souring on his economic stewardship, the May 8 deal is a sign that Trump is seeking an off-ramp from his plan to raise U.S. tariffs to their highest level in a century. Trump has been trying to pressure other countries to reach quick agreements with the U.S. amid the 90-day reprieve. The U.K.’s tariffs were originally set at 10%, meaning it didn’t directly benefit from that temporary easement.
The president is also locked in a standoff with China, the U.S.’s third-largest trading partner, on which he imposed 145% tariffs. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are kicking off formal talks this week with their Chinese counterpart, but Trump ruled out preemptively lowering his duties to speed a deal.