Trump Unveils US-UK Trade Deal With Boost For Steel, Agriculture, And Boeing

A new trade agreement between the U.S. and the U.K. will open billions of dollars in market access for American exports, including a $10 billion aircraft sale involving Boeing (BA), President Donald Trump announced Thursday.

Boeing’s stock was up nearly 3% after the announcement.

Trump described the deal as a comprehensive overhaul of trade terms, reducing tariff and non-tariff barriers while aligning security and industrial policy.

“We have been negotiating over the past four weeks,” Trump said in remarks from Washington. “With this deal, the U.K. joins the U.S. in affirming that reciprocity and fairness is an essential and vital principle of international trade.”

He explained that the agreement will expand U.K. market access for a wide range of U.S. goods, including beef, ethanol, chemicals, machinery, and other industrial products that previously faced restrictions. 

Trump added that the U.K. has also committed to fast-tracking American goods through customs, with Trump promising a “very quick form of approval” free of bureaucratic delays.

Howard Lutnick, the U.S. Secretary of Commerce, said the agreement represents a “$5 billion opportunity” for U.S. exporters and includes a major aircraft order worth $10 billion for Boeing, which saw China return its plane after the imposition of Trump’s tariffs. The buyer has not yet been disclosed.

Lutnick also added that the U.K. can send 100,000 cars into the U.S. on the 10% baseline tariff. Meanwhile, Rolls-Royce engines and airplane parts can be exported tariff-free from the U.K. to the U.S..

Trump said the deal also includes plans for “historic” security alignment between the two nations, describing the U.K. as “truly one of our greatest allies.” 

According to him, the agreement marks the first instance of a trade pact incorporating provisions explicitly aimed at coordinating industrial and defense-related sectors, including export controls and protections for steel.

“Steel is a big factor,” Trump said. “Both countries will become stronger with steel and things necessary for military.”

U.K. Prime Minister Keir Starmer called the agreement “really important,” noting that it will create jobs across both countries while reinforcing economic security. “The timing couldn’t be more apt,” Stern added, referencing the anniversary of the end of World War II.

The final legal language of the deal is still being finalized, but Trump indicated that all major provisions have been approved and implementation could begin within weeks.

Markets strengthened after the announcement. The SPDR S&P 500 ETF Trust (SPY) was up 0.8%, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, jumped more than 1%, and the SPDR Dow Jones Industrial Average ETF (DIA) climbed 0.9%.

Here are the major highlights of the deal:

• The 25% tariff on U.K. steel and aluminum has been removed, which cuts the rate on most car exports from 27.5% to 10%
• The 10% tariff, announced on 'Liberation Day', still applies to most other U.K. goods entering the U.S.
• U.K. farmers have been given a tariff free quota for 13,000 metric tonnes.

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