Trump Says UK Trade Agreement Just First of Many Tariff Deals to Come

WASHINGTON — An exuberant President Donald Trump took the White House equivalent of a victory lap on Thursday as he announced an agreement with the United Kingdom on a trade framework that promises to expand market access for billions of dollars of U.S. goods.

“Frankly, we’ve managed to achieve what many people had tried and failed to achieve for many years,” the president said from behind the resolute desk in the Oval Office as Commerce Secretary Howard Lutnick, Vice President JD Vance, British Ambassador Peter Mandelson and U.S. Trade Representative Jamieson Greer looked on.

Under the agreement, the United Kingdom said it would fast-track U.S.-made goods through its customs process while simultaneously reducing restrictions on scores of agricultural, energy-related and industrial exports, including ethanol and U.S.-raised beef.

Speaking from London, U.K. Prime Minister Keir Starmer said the deal would lower U.S. tariffs on the first 100,000 British-made automobiles to enter the U.S. each year to 10% (down from 27.5%), and slash duties on U.K. steel and aluminum to zero.

The White House later sought to clarify that aspect of the agreement, saying it intended to negotiate “an alternative arrangement” to the U.S. tariffs on metals.

At the same time, Starmer said the United Kingdom will not weaken its food standards on American products, something that has been seen as an obstacle to an agreement in the past.

The comment inspired Trump to quip that Health Secretary Robert F. Kennedy Jr.’s “Make America Healthy Again” agenda was moving the U.S. closer to the food standards already in place in the U.K. and European Union, and predicted Britain upholding its standards would not be a problem.

Both leaders said additional details of the agreement still remained to be negotiated, a process expected to extend well into the summer, and that many specifics have yet to be finalized.

“It’s a very big deal right now, but over time there will be changes made, adjustments here and there … that I think are going to make everyone very happy,” Trump said.

Thursday’s announcement of a trade deal is the first Trump has made since he unveiled what he called a “reciprocal tariff” strategy in early April to be imposed on more than 100 trading partners with which the United States currently has a trade deficit.

The president later paused those tariffs temporarily in order to allow the affected nations to negotiate new, “fairer” trade agreements with the U.S.

Starmer, who addressed White House reporters via speakerphone, said he felt it was particularly appropriate to announce the framework Thursday, which also happened to be the anniversary of the end of World War II in Europe.

“It truly is a fantastic, historic day,” he said.

Trump, who has rarely looked happier when members of the press are in his proximity, called the framework a “tremendous trade deal for both countries.”

Lutnick told reporters that the U.S. has agreed to allow Rolls-Royce jet engines and parts to be imported into the U.S. tariff free.

At the same time, he said a British airline, which he did not name, will soon be announcing its purchase of $10 billion worth of planes from The Boeing Company.

Among the key issues that still need to be addressed is whether, and if so how, the United Kingdom will change its digital services tax, which U.S. tech firms say is unreasonable and discriminates against them.

In a statement issued after this morning’s press conference, the prime minister’s office reiterated that no deal has been struck on the tax, and that both sides had agreed to continue talks on a future digital trade deal.

Other areas still being discussed include how the pharmaceutical industry will be treated under future tweaks to the current framework, as well as how the two nations will collaborate on things like aerospace and defense technologies, nuclear fusion and AI and quantum computing.

Despite the unfinished working out of the details, the White House said in a written statement Thursday that it believes the agreement with the U.K. “sets the tone for other trading partners to promote reciprocal trade with the United States.”

However, during the press conference, Trump warned against expectations that one trade agreement will fit all trading partners.

The U.K., he said, “made a good deal” and also benefited from being first to the negotiating table.

Other trading partners will likely be subjected to “much higher” tariffs than the 10% being imposed on British goods.

Trump also noted that he has long wanted to reach a trade deal with the United Kingdom — citing stalled efforts going back to his first administration.

The United Kingdom was also anxious for a deal to replace trade revenue lost after its “Brexit” from the European Union.

Still ahead for the White House are talks to end the current trade standoff with China, on whom Trump has imposed tariffs of 145%.

This coming weekend, Treasury Secretary Scott Bessent and U.S. Trade Representative Greer are expected to begin formal talks in Switzerland with their Chinese counterpart, Vice Premier He Lifeng.

“We almost made a great deal with China before COVID, but then Biden came in, and as usual, nothing happened,” Trump said, never missing an opportunity to criticize the predecessor to his second term, former President Joe Biden.

“China, as you know, has a tremendous trade surplus with us, and we just can’t have that,” the president continued. “But I think we’re going to have a good weekend of talks with China. They have a lot to gain. I think they have far more to gain than we do,” the president said.

Asked if he would consider immediately lowering the 145% tariff he’s imposed on many Chinese goods if talks go well, Trump seemed at least open to considering the idea.

“I mean, we’re going to see. Right now you can’t get any higher. It’s at 145%, so we know it’s coming down. I think we’re going to have a very good relationship,” he said.

Dan can be reached at [email protected] and @DanMcCue