US-UK Bilateral Trade Deal: Tariffs on Steel, Aluminium Lifted, Car Import Tariff Cut to 10%

[US Removes Tariffs on UK Steel and Aluminium, Cuts Car Rate to 10%]

On May 8, 2025, President Donald Trump and UK Prime Minister Keir Starmer announced a bilateral trade deal under which the US will immediately lift the 25% tariffs on UK steel and aluminium, and cut the car import tariff from 27.5% to 10%. The lower car rate applies to the first 100,000 vehicles exported from the UK to the US each year - 101,000 were exported last year. In return, the UK will remove tariffs on US ethanol and grant reciprocal market access for American beef. Starmer called it a “fantastic, historic” day during a phone appearance at the Oval Office press conference. While Trump hailed the deal as a major win for his tariff agenda, the baseline 10% tariff still applies to most other UK goods entering the US.