The United States has taken a significant step towards implementing the General Terms of the Economic Prosperity Deal with the United Kingdom. Announced on May 8, 2025, by President Donald J. Trump and UK Prime Minister Keir Starmer, this agreement aims to enhance trade relations between the two nations.
According to President Trump, "The General Terms outline a historic trade deal that provides American companies unprecedented access to British markets while bolstering the national security and economy of the United States." The deal includes expanded market access for American exports such as beef and ethanol, alongside a reduction in non-tariff barriers that have affected U.S. products.
One key component is an annual quota for UK automotive imports into the U.S., set at 100,000 vehicles with a tariff rate of 10 percent. Additionally, both countries will work on securing supply chains for steel and aluminum products. This cooperation could lead to preferential treatment for pharmaceuticals contingent upon meeting specific security standards.
The agreement also focuses on aerospace trade by establishing tariff-free bilateral exchanges in certain products within this sector. This move is intended to strengthen supply chains in aerospace manufacturing.
President Trump stated his belief that these actions are "consistent with the national interests of the United States" and necessary for addressing national security concerns related to trade deficits and import regulations.
Furthermore, adjustments have been made regarding tariffs on automobiles and parts from the UK, effective shortly after publication in the Federal Register. These measures are part of broader efforts to modify existing tariffs under various proclamations affecting steel, aluminum, and automobile imports.
Overall, this order aims to implement these terms without impairing existing legal authorities or creating enforceable rights against any U.S. entity or individual.
