UK–US 'Historic' Trade Deal Saves Jobs and Opens New Doors

Keir Starmer hails major breakthrough as steel, car, beef and aerospace sectors benefit from landmark agreement with Trump administration

The United Kingdom and United States have officially sealed what both governments are calling a "historic" trade deal—an agreement years in the making that promises to protect key British industries and unlock new export opportunities. While the deal stops short of a full free trade agreement, it has been widely welcomed for its targeted relief to vulnerable sectors.

Not a Full Free Trade Deal—But Still a Big Win

Although not a comprehensive free trade agreement, the deal focuses on key areas under pressure from recent US tariffs. The agreement primarily covers cars, steel, agriculture, ethanol, and aerospace, while leaving sectors such as digital services and healthcare for future negotiations.

The most significant victories? Major tariff reductions for the UK’s car and steel industries, sectors previously threatened by US-imposed levies that formed part of a global trade shake-up initiated by President Donald Trump last month.

Car and Steel Tariff Relief Secures British Jobs

British car exports to the US will see tariffs slashed from 27.5% to 10%, matching the base rate the US applies globally. The tariff reduction applies to the first 100,000 vehicles per year—nearly the entire volume of UK exports to the US.

In steel, the UK has scored a complete exemption from the previous 25% import tariff. With many British steel firms on the brink of collapse just weeks ago, this move is expected to save thousands of jobs.

Prime Minister Sir Keir Starmer called the outcome “jobs saved, jobs won—but not job done,” while President Trump described the deal as “comprehensive” and said he would like it “to go even further.”

New Beef Access Without Sacrificing Food Standards

In a major win for British agriculture, the UK has secured mutual access to the US beef market—13,000 metric tonnes of tariff-free beef can now be traded between the two nations. Crucially, this deal does not compromise British food safety standards. Hormone-treated beef and chlorinated chicken remain banned from UK supermarkets.

Compared to the controversial Australia-UK deal signed by the previous government, which allowed 35,000 tonnes of beef imports rising to 110,000 tonnes, the US agreement is seen as far more balanced and manageable.

Ethanol and Aerospace Sectors Also Benefit

The UK has agreed to remove tariffs on US ethanol imports, used in beer production and biofuels, to zero. In exchange, the US will drop tariffs on UK aerospace products, including Rolls-Royce engines and aircraft components.

US Commerce Secretary Howard Lutnick claimed these concessions together represent up to $5 billion in export opportunities for American businesses. He also hinted that a major UK airline would soon announce a $10 billion deal to purchase Boeing aircraft.

What’s Missing: Health, Film, and Tech Taxes

Notably absent from the deal were details around pharmaceuticals, digital services, and film industry tariffs. While Starmer confirmed that the NHS remains off-limits, he said the UK has secured “preferential treatment” in the pharmaceutical space, should the US go ahead with medicine tariffs in future.

Meanwhile, the UK’s digital services tax—primarily impacting US tech giants—remains intact. Both sides have agreed to work toward a digital trade deal aimed at reducing bureaucracy for UK exporters.

Conclusion: A Strategic Step Forward—With More to Come

The UK–US agreement marks a turning point in transatlantic trade relations, offering vital relief for industries hit by protectionist measures while paving the way for deeper collaboration. With strategic wins in cars, steel, beef, and aerospace, the deal provides short-term security and long-term promise.

Yet key issues remain unresolved—particularly in digital services and healthcare. As both sides prepare for future rounds of negotiation, today’s deal signals a shift from survival mode to strategic opportunity for UK exporters.

One thing is clear: this is only the beginning of a new era in UK–US economic ties.

Sources: (SKY.com, BBC.co.uk)