UK, US Reach Breakthrough Trade Deal with Tariff Cuts

The United Kingdom and the United States have reached a historic trade deal, hailed by both Prime Minister Keir Starmer and President Donald Trump. The agreement reduces U.S. tariffs on British car imports from 27.5% to 10% for a quota of 100,000 vehicles annually, and eliminates the 25% tariffs on British steel and aluminum imports. While the UK has also agreed to lower its tariffs on American goods from 5.1% to 1.8%, most UK exports to the U.S. will still face a 10% tariff. The deal, described by Trump as "historic" and a result of Brexit, is seen as a relief for British industries struggling under previous tariff regimes, including carmakers and steelmakers. Despite some criticism that the UK remains worse off compared to pre-tariff levels and concerns over food standards with cheaper American beef imports, both leaders emphasized the deal's importance for economic prosperity and the strong UK-US partnership. This breakthrough comes amid broader global trade tensions following the U.S. tariff war initiated earlier in the year.