The administration of US President Donald Trump has forged a trade agreement with the UK that has the potential to increase British importation of more US machinery and other steel-intensive manufactured goods, Kallanish reports.
Trump and UK prime minister Keir Starmer on Thursday announced cooperation on a broad framework to lower some tariffs and ease other trade barriers. Trump said the details will be hammered out in the coming weeks.
In a statement, the US Commerce Department says the agreement will bring “unprecedented access to the UK markets while bolstering US national security.”
Commerce secretary Howard Lutnick said the agreement with the UK is mutually beneficial and sets the stage for more pacts with other US trading partners.
“This deal marks a new era in our relationship with the United Kingdom, our great ally.” Lutnick said. “And more importantly this deal opens up an enormous multibillion dollar export opportunity for hard-working Americans. While groundbreaking, this deal is the first of many.”
Trump on Thursday said he expects progress soon on a trade deal with the EU. The president is sending treasury secretary Scott Bessent to Switzerland for meetings with Chinese officials in an attempt to jump-start negotiations.
UK leaders laud the apparent agreement to remove the US tariff on imports of UK-produced steel. The US imported 264,863 tons of British steel in 2024, up from 217,734t in 2023, according to Commerce Department data.
Lutnick said the UK has pledged to reduce non-tariff barriers on US machinery exports and to streamline some customs processes. Trump’s global 10% tariff that took effect a month ago will remain broadly in place for UK. However, the tariff rate on US imports of British-made autos will be lowered to that 10% rate from 25%.
Noting that critical details may not be known for a period of weeks or longer, one US steel market participant is reacting with conditional optimism about Thursday’s revelations.
“Unless there are conditions that make this a lopsided deal, the results should be positive,” comments a US steel coil distributor.
Dom Yanchunas USA , Kristen DiLandro USA
