May 11, 2025

Recently, a trade “deal” between the US and UK has been described as achieving basically nothing, raising concerns about future trade negotiations. The agreement only reduced tariffs on a small percentage of British goods, with the overall impact on US trade being minimal. This deal is seen as a sign of the US administration’s approach to trade policy, focusing on symbolic wins for agricultural and energy exporters while keeping tariffs relatively high for most goods.

The US-UK agreement involves a reduction in car tariffs and promises to develop a tariff-rate-quota system for British steel and aluminum. The deal also includes vague promises about negotiating preferential treatment outcomes for pharmaceuticals. However, there is a lack of concrete details on how these agreements will be implemented, raising doubts about the effectiveness of the deal in normalizing trade relations between the two countries.

The limited scope of the US-UK deal, coupled with the administration’s focus on maintaining tariffs of at least 10% for most goods, indicates a challenging environment for future trade negotiations. With the US continuing to draw up more tariffs on imports, it remains to be seen how other major trading partners will fare in negotiations with the US. The UK deal serves as a blueprint for the administration’s approach to trade policy, emphasizing sector-specific concessions and forcing countries to align with US interests in key sectors.

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