President Donald Trump and U.K. Prime Minister Keir Starmer have reached a trade agreement that lowers U.S. tariffs on British autos, steel, and aluminum, while maintaining a 10% baseline tariff on other goods and boosting American exports of beef and ethanol.

President Donald Trump announced a new trade agreement with the United Kingdom on Thursday that cuts U.S. import taxes on key British goods - autos, steel, and aluminum - while preserving a 10% baseline tariff on other U.K. imports.

In return, the U.K. will lower tariffs on 2,500 American products, such as wine, olive oil, and sports gear, and increase imports of U.S. beef and ethanol. The U.K. also committed to simplifying customs procedures for U.S. goods.

The auto tariff on British cars will drop from 27.5% to 10% for up to 100,000 vehicles annually. Steel and aluminum tariffs will fall from 25% to zero. Trump called the 10% rate “a low number,” suggesting that other countries negotiating with the U.S. might face higher rates based on trade imbalances.

Commerce Secretary Howard Lutnick confirmed that a major British company is preparing to buy $10 billion worth of Boeing aircraft.

Prime Minister Starmer, speaking to Trump during a public phone call on the anniversary of Victory in Europe Day, called the deal “historic” and said it would help protect thousands of U.K. manufacturing jobs. Speaking later at a Jaguar Land Rover plant, Starmer said this agreement was “just the start” of broader trade engagement.

Trump touted the deal as evidence of his administration’s ability to secure favorable terms and remained optimistic about the U.S. economy, predicting a strong stock market performance. He downplayed inflation concerns and dismissed corporate warnings about price increases as negotiation tactics.

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