Brexit and Beyond: The UK-US Tariff Deal that Strikes a Balance

President Donald Trump has officially signed a landmark tariff agreement aimed at reducing trade barriers between the UK and US, a significant move following substantial negotiations last month. This agreement focuses on lowering tariffs on UK cars exported to the US, adjusting the previous 25% import tax to a more manageable 10%. However, this pact also introduces a 10% levy on most UK goods, leaving many aspects of trade unaddressed, particularly concerning steel imports.

During the G7 summit in Canada, UK Prime Minister Sir Keir Starmer praised the agreement, considering it a vital step forward. Despite discussions aiming to mitigate Trump’s earlier tariff increases, the deal has been labeled as somewhat limited in scope, especially regarding steel, where the current US tax is still 25%. Trump did hint at future discussions but did not provide specific details on steel tariffs, highlighting ongoing negotiations.

The automotive sector sees this deal as a beneficial step, as it alleviates some fears surrounding reduced exports to the US—recent months experienced a decline as companies awaited clarity on the tariffs. The UK has also granted a tariff-free quota of 1.4 billion liters for US ethanol, optimistic about bolstering trade while facing internal pressures regarding local markets and job security.

Despite the optimism from the UK government, criticisms arise from opposition parties. Kemi Badenoch of the Conservative Party labeled the agreement a