Basics

The U.S. and the UK have shared a long and lucrative trade and security relationship, deemed the “special relationship.” The UK’s decision to leave the European Union in 2016 allowed it to establish a new deal with the U.S. In 2024, the total goods trade with the United Kingdom was estimated at $148.0 billion, with the UK being the only country with which the U.S. retains a trade surplus. Following years of negotiating, the countries recently announced they had come to an agreement, marking the first deal to be established since President Trump’s Liberation Day tariffs. The deal will include reduced tariffs on automobiles and steel and a reciprocal tariff on beef. However, some things have remained the same, including the UK’s retention of a digital services tax and a refusal to compromise on agricultural food standards. Advocates argue the deal will benefit both economies significantly and may act as a framework for other nations wishing to negotiate with the new administration.