US and GB Strike Trade Deal

On 11 May 2025, the US and UK announced that both side unveiled a ‘finalized’ Trade Framework. First announced on 8 May 2025, the new US-UK Trade Deal represents the first negotiated since ‘Liberation Day’ on the 2nd of April, 2025.

According to the Framework, the US will export USD 5 billion to UK. In particular, US will remove tariff on UK steel and aluminum, while UK will In return remove the 20% tariff on 1,000 tonnes of US beef. The UK will also offer a ‘preferential duty-free TRQ on 1.4 billions liters of US ethanol. UK won a tariff rate quota to export to the US 100,000 vehicles at 10% tariff, instead of the current 25% tariff.

The exemption of tariff for UK aerospace component is specially significant as Rolls-Royce is a major supplier of jet engines and parts to Boeing in the US. The aerospace sector in the UK is worth GBP 40 billion and supports nearly half a million jobs. In return for zero-tariff on British airplane parts, the owner of British Airways, IAG, has committed to buy Boeing planes for a total of USD 10 billion.

UK Ambassador to the US, Peter Mandelson, addressed the criticism that not all tariffs have been removed. In particular, vague language applied to pharmaceuticals. Similarly, not much progress was noted for British films entering the US after Trump announced a 100% tariff on foreign films. Ambassador Mandelson suggested that there might still be some wiggle room until the deal takes effect.