US and UK agree Economic Prosperity Deal

 

The United States and the United Kingdom signed their new “Economic Prosperity Deal” on 8 May 2025—marking the first full bilateral trade pact agreed by the Starmer and Trump administrations. 

 

Headline provisions slash U.S. tariffs on British cars from 27.5 % to 10 % (up to 100,000 vehicles a year) and remove duties on UK steel and aluminium, changes the government says will safeguard thousands of manufacturing jobs. In return, the UK will phase out its tariffs on U.S. ethanol and open a quota for 13,000 tonnes of American beef while insisting that existing food-safety standards remain intact. 

 

The agreement also commits both sides to fast-track talks on digital services, pharmaceuticals and advanced technologies, positioning the deal as a framework for deeper integration rather than a final destination. Although some details—such as broader services access and digital-tax issues—are still on the table, the accord delivers immediate relief to exporters and signals renewed trans-Atlantic momentum after years of stop-start negotiations. 

 

Click on the below link to read more. 

 

https://www.gov.uk/government/news/landmark-economic-deal-with-united-states-saves-thousands-of-jobs-for-british-car-makers-and-steel-industry