Rt Hon Liam Byrne Chair of the Business and Trade Committee statement on reports of US-UK Deal
8 May 2025
Chair comment
Rt Hon Liam Byrne Chair of the Business and Trade Committee statement on reports of US-UK Deal: “At first blush, it looks like the UK has stolen first-mover advantage and delivered the big win-win in #TrumpTariffTalks - complete with long-term guarantees.
“A modest retreat on agriculture has unlocked a major reprieve for tens of thousands of jobs in the UK’s car and steel industries, in a deal that does not compromise our ability to pursue a big, bold reset with the European Union on 19 May. The transatlantic alliance has been strengthened— and not at the expense of our cross-Channel possibilities.
There is one major disadvantage, the 10% general tariff remains—but its removal was always a long shot with this administration.
Here's the headlines:
- The UK will be able to export up to 100,000 cars per year to the US at a 10% tariff, down from the prevailing 25%. This covers the majority of the 120,000 vehicles the UK currently exports annually—but it places a ceiling on future growth.
- Tariffs on steel and aluminium will fall from 25% to zero.
- A 10% tariff on most other goods imports remains in place.
- President Trump declared the deal includes “billions of dollars of increased market access for American exports,” with reductions for beef, ethanol, chemicals, and machinery—though without any relaxation of SPS (sanitary and phytosanitary) standards.
- Some guarantees have been secured for the pharmaceutical sector.
- A shared ambition has been expressed for this agreement to serve as a "springboard" for future cooperation on AI and technology.
- No announcement was made regarding the Digital Services Tax.
Further information
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