Hot on the heels of a trade deal with India, the UK has announced a new agreement with the United States—though limited in scope. The deal was confirmed after a transatlantic speakerphone call between Prime Minister Keir Starmer and former US President Donald Trump, described as slightly chaotic.

A headline measure is the reduction of US tariffs on UK car imports, from 27.5% to 10%, for up to 100,000 vehicles per year. While capped, this nearly matches current UK exports to the US. Starmer hailed the change as a “huge and important reduction.”

US tariffs on British steel and aluminium, previously set at 25%, have also been removed. Though the industries represent a modest £700 million in annual trade, the move holds symbolic significance, particularly after the UK government stepped in to take control of British Steel last month to protect the Scunthorpe plant.

The agricultural element of the deal has drawn close scrutiny. Despite concerns about food standards, Downing Street confirmed no compromise was made on banning chlorinated chicken or hormone-treated beef. The UK will, however, allow £5 billion in US agricultural imports, while gaining exclusive access for its beef farmers to the US market. US Agriculture Secretary Brooke Rollins said the deal would “exponentially increase” US beef exports.

Other points include streamlined customs procedures, improved procurement access for US firms, and preferential treatment for US aerospace manufacturers. Crucially, the 10% duty rate for the majority of UK goods exported to the US remains in place.

The team at Atlantic Pacific will be monitoring further developments closely.