Trump Administration Reaches First 'Trade Agreement' with UK… To Lower Car Tariffs

Trump: "If You Bring a Serious Proposal

Show America is Open"

The U.S. Donald Trump administration has decided to lower the itemized tariff rate on British cars from 25% to 10% for up to 100,000 units annually. Additionally, it has decided to abolish the 25% tariff on British steel and aluminum.

In response, the UK has decided to open its markets for ethanol, beef, agricultural products, and machinery. However, the U.S. will maintain the basic reciprocal tariff of 10% on the UK.

President Donald Trump publicly announced the U.S.-UK trade agreement during a phone call with UK Prime Minister Keir Starmer at the White House on the 8th (local time), stating, "We have reached a groundbreaking deal with the UK."

President Trump also posted on social media (SNS), "We have signed a fair, open, and reciprocal agreement that past presidents never cared about," adding, "Today is an amazing day for America." He continued, "This agreement shows that if other countries respect the U.S. and bring serious proposals to the table, America is open for business," and "more agreements will follow."

"Under this agreement, the UK has decided to open its market for ethanol, beef, machinery, and all agricultural products," said U.S. Secretary of Commerce Howard Lutnick. He also emphasized, "The basic reciprocal tariff of 10% on the UK will continue, generating $6 billion in revenue."

The U.S. has decided to impose a 10% tariff instead of a 25% tariff on up to 100,000 British vehicles annually. The U.S. has also announced the abolition of the 25% tariff on British steel and aluminum, according to the UK government. The UK has also agreed to purchase $10 billion worth of Boeing aircraft.

This is the first time the Trump administration has announced a trade agreement with an individual country after launching a global tariff war by announcing reciprocal tariffs on trading partners worldwide early last month.

Reporter Jonghyun Song scream@hankyung.com