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Home Politics

US-UK trade deal: What to know

May 9, 2025
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This story appeared in The Logoff, a daily newsletter that helps you stay informed about the Trump administration without letting political news take over your life. Subscribe here.

Welcome to The Logoff: The US and UK announced a framework for a new trade deal today, and while Trump administration officials touted the pact as a straightforward victory for the president’s tariff policy, the real story is far more complicated.

What’s the latest? The US and the UK have a trade deal — in principle. Nothing has been signed yet, but the framework announced Thursday would lower some tariff barriers on both countries. The UK would still be subjected to President Donald Trump’s 10 percent global tariff, a baseline rate he imposed on imports from around the world.

What would this trade deal change? If signed, it would reduce US tariff barriers on UK cars, steel, and other items, and the UK would make it easier for the US to sell beef, ethanol, and agricultural goods, among other provisions.

Is this because of the tariffs? While the deal would reduce — but not eliminate — the tariffs Trump has imposed on the UK, interest in a trade deal has been a topic of discussion since Trump’s first term, driven in part by the UK’s decision to leave the EU.

What’s the big picture? Trump has promised tariffs will bring trading partners to the negotiating table, leading to deals that help the US economy via better access to foreign markets. And administration officials portrayed today’s deal as proof that strategy is working. That’s not entirely wrong: While the two countries were already moving in that direction, the tariffs likely gave the UK added incentive to negotiate.

But the benefits US exporters would win under this agreement have to be weighed against the costs: US consumers are still paying higher taxes on UK goods than they were before Trump’s tariffs — and higher taxes on goods from everywhere else in the world as well.

And with that, it’s time to log off…

Speaking of the UK, here’s a fun (and reasonably short) article about how a British town turned a discarded sofa into a performance art piece. Thanks so much for reading. Andrew Prokop is holding down the fort Friday, and I’ll see you back here Monday.



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