President Donald Trump has announced a new commercial agreement between the United States and the United Kingdom, marking what he described as a “historic day” for the transatlantic alliance. The agreement, presented at the 80th anniversary of VE Day, is the first important commercial agreement since the president introduced hunger tariffs in Dozen of commercial partners earlier this year.
Speaking at a press conference at the Oval office, Trump said the agreement “to rebuild the global commercial system” and strengthen economic ties between two of the world’s largest economies, even the final details are still being completed.
Prime Minister Keir Starmer praised the announcement as a great diplomatic achievement, qualifying the agreement “an incredible platform for the future”. Starmer pointed out the symbolic moment of the agreement, aligning it with the 80th anniversary of victory on Europe Day, when Winston Churchill announced the end of World War II in Europe. The prime minister emphasized the alliance with deep boats between the United Kingdom and the United States in defense, intelligence and now, more and more, in commerce and technology.
“There are no two closer countries than the United States and the United Kingdom in areas such as defense and intelligence exchange,” said Starmer. “Now, commercial and economic policy has joined that list.”
The agreement includes provisions for lower tariffs and expand bilateral trade in key sectors. The United States agreed to reduce tariffs in cars manufactured in the United Kingdom to 10%, while the United Kingdom will continue to buy Boeing airplanes worth $ 10 billion. The agreement also grants access without rates for Rolls-Royce engines made by the United Kingdom and includes favorite terms for US exports such as ethanol, beef and industrial machinery.
Howard Lutnick, a senior member of the American commercial negotiation team, described the United Kingdom as a “great market” and said the agreement would be worth 5 billion for US companies. He said the agreement aims to reduce bureaucracy and rationalize personalized procedures.
Trump praised the negotiating teams on both sides and thanked Starmer for his association, describing the United Kingdom as “just at the top” or the closest allies in the United States. He added that “many meetings” were planned with other nations in the next week to expand the new framework.
Steel also stood out as a key part of the agreement. Trump said the objective was to relieve restrictions and revitalize trade in the sector, adding: “We will strengthen us when steel trade is not based.”
The announcement occurs after months of volatility in global markets after the Trump’s “Liberation Day” Tariff announcement. While the United States delayed the imposition of its toughest reciprocal rates until July, the base rate of 10% of imports and 145% tax in Chinese products remain in place.
The United Kingdom was saved from the worst increases in the rate due to its favorable trade balance with the US, importing more American assets than exports.
Despite the optimistic tone, experts have urged caution when interpreting the agreement as a completely final trade agreement. Simon Gleeson, head of the US corporate desktop. In the tax and advice signing Blick Rothenberg, he said that the agreement “seems more a declaration of mitigation of intention and rate instead of the declaration signed so longed for.”
“Industries such as steel, aluminum and car manufacturing show how narrow the current approach has been: £ 59.3 billion compared to £ 137.0 billion in services,” he said.
Gleeson added that the volatile conditions of the market and the uncertainty of the bond market may have helped to provide “sense and sensitivity” to the negotiation table, pointing out that the tone had changed a strong rhetoric to a more constructive perspective.
The United Kingdom government said it is still committed to taking advantage of the agreement and creating a modern and balanced commercial relationship with the United States. A government spokesman said: “This agreement reinforces our strong economic and strategic association and establishes the basis for deeper cooperation in the coming years.”
As both nations advance, the announcement has been widely seen as a timely reaffermatic of the “special relationship” between Great Britain and the United States, which could shape a new chapter in global trade.
Jamie Young
Jamie is a senior reporter of Business Matters, who brings more than a decade of experience in commercial reports of the United Kingdom. Jamie has a business administration title and participates regularly in conferences and industry workshops. When he does not inform about the last business development, Jamie is passionate about the mentoring of promising journalists and businessmen to inspire the next generation of business leaders.
