U.S.-UK trade deal covers ag, ethanol
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By TAMMIE SLOUP
FarmWeek
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A trade deal between the U.S. and the United Kingdom will create a $5 billion opportunity for new exports for U.S. farmers, including more than $700 million in ethanol exports and $250 million in other agricultural products.
A trade deal between the U.S. and the United Kingdom will create a $5 billion opportunity for new exports for U.S. farmers, including more than $700 million in ethanol exports and $250 million in other agricultural products.
President Donald Trump and Prime Minister Keir Starmer announced the historic trade deal May 8, with details to still be hashed out.
“The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers,” Trump said, adding the UK will reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products.
“This is going to boost trade between and across our countries. It’s going to not only protect jobs, but create jobs, opening market access,” said Starmer, who called in to the Oval Office during Trump’s news conference.
According to a White House fact sheet, the deal includes:
More than $700 million in ethanol exports and $250 million in other agricultural products, like beef.
Committing the countries to work together to enhance industrial and agricultural market access.
Closing loopholes and increasing U.S. firms’ competitiveness in the UK’s procurement market.
Streamlining customs procedures for U.S. exports.
Establishing high standard commitments in the areas of intellectual property, labor and environment.
Notably, any meat imported into the UK must comply with UK food standards, including a ban on hormone-treated beef.
“We are thankful conversations are occurring, but there is much work to be done to guarantee the U.S. farmer, and our agricultural products, have fair access to the UK marketplace,” Illinois Farm Bureau President Brian Duncan said following the announcement.
The reciprocal tariff rate of 10% on the UK remains in effect, while the U.S. will agree to an alternative arrangement for the Section 232 tariffs on UK autos.
Under the deal, the first 100,000 vehicles imported into the U.S. by UK car manufacturers each year are subject to the reciprocal rate of 10% and any additional vehicles each year are subject to 25% rates.
“The United States also recognizes the economic security measures taken by the UK to combat global steel excess capacity and will negotiate an alternative arrangement to the Section 232 tariffs on steel and aluminum,” according to the White House.
U.S. Commerce Secretary Howard Lutnick said the continued 10% tariff on the UK will also produce $6 billion in revenue for the United States.
U.S. total goods trade with the UK was an estimated $148 billion in 2024.
During his news conference, Trump said the trade deal will be the “first of many,” adding there are “numerous” deals in the works. Treasury Secretary Scott Bessent also met with Chinese counterparts in Switzerland over the weekend.
“China very much wants to make a deal,” Trump said. “We’ll see how that works out.”
British Ambassador to the U.S. Peter Mandelson added that the countries will continue reducing tariffs and non-tariff barriers, and the deal “provides very good launchpad for what we build on in the future.”
This story was distributed through a cooperative project between Illinois Farm Bureau and the Illinois Press Association. For more food and farming news, visit FarmWeekNow.com.
