The US-UK trade deal does not exempt Britons from the 10% tax.

WashingtonPresident Donald Trump announced a trade agreement with the United Kingdom early this morning, the first the White House has reached since launching its tariff war. The US president, who explained that the final details "will be written in the coming weeks," said that "the agreement includes billions of dollars in expanded market access for US exports."

It also includes plans to align the United Kingdom with US economic security. However, Commerce Secretary Howard Lutnick has clarified that the 10% tariffs approved in April will remain in place.

"Both countries have agreed that economic security is national security, and we will work together as allies to ensure we have a strong industrial base, appropriate export controls, and key protections for technologies and industries like steel," Trump said from the Oval Office. The White House did say that tariffs on vehicles imported from the United Kingdom will be reduced to 10%. The British government, for its part, has confirmed that tariffs on steel and aluminum will be eliminated, according to Reuters.

Among the US sectors that will benefit from the agreement is "the agricultural sector, as it will significantly increase access to American beef, ethanol, and virtually all products produced by farmers like Allen Grape."

"They've been fantastic in their collaboration on this issue, in the special relationship and the extraordinary bond. It truly is a bond both externally and internally between our two countries, which will soon be stronger than ever. We truly have a great relationship," said Trump, who praised the relationship with London. Via phone call, British Prime Minister Keir Starmer also praised the ties between the two nations. "There are no two countries that are closer than ours, and now we are taking that relationship to important new ground by adding trade and economics to the proximity of our relationship," the Briton celebrated.

Meeting with the Chinese government

Beyond the trade deal, Trump has also spoken about the meeting scheduled for this weekend in Switzerland between the US and Chinese delegations. The president has said he believes "it will be a substantial meeting." When asked if he would consider lowering tariffs for Beijing—which reach up to 145%—Trump responded: "It could be. We have to look at it. They can't go any higher, they're 145%, so we know they're coming down."

The president has once again emphasized his "good relationship" with his Chinese counterpart, Xi Jinping, although he acknowledged that the relationship has "suffered" due to COVID. Regarding the meeting to negotiate the tariff war, Trump said he would like to see China "open" to an agreement. "I think we'll have a good weekend with China," he added.

The Republican already teased a "major trade deal with representatives of a great and respectable country" on Wednesday night in a post on Truth Social. "The agreement with the United Kingdom is a complete and comprehensive agreement that will strengthen the US-UK relationship for many years to come. Given our long history and shared alliances, it is a great honor that the United Kingdom is our first announcement. There will be many more agreements, which are in advanced stages of negotiation," he wrote. However, despite the US president describing it as "a complete and comprehensive agreement," British representatives clarified that the agreement that will be signed will not be a comprehensive trade pact, but one that will focus on targeting tariffs in certain sectors.

The announcement may serve as a guide for other countries on how best to negotiate with Trump. During his visit to Washington in February, British Prime Minister Keir Starmer avoided confrontation with Trump over tariffs and the war in Ukraine. Instead, he showed up at the Oval Office with a gift: an invitation, signed by King Charles, to visit his country. The royal invitation undoubtedly appealed to Trump's ego.

Last April, the United States applied the global base tariff of 10% to the United Kingdom for all countries – unlike the EU, for example, which initially imposed 20% – and all British aluminum and steel are also subject to the general 25% it imposed on imports. Cars are also affected, subject to the 25% for imports of vehicles and assembly parts.

The United Kingdom had hoped to achieve a reduction in the 25% tariffs on steel and cars, but officials believed that the base tariff of 10% would probably remain, according to the Wall Street JournalIn return, the United Kingdom offered concessions on a digital tax it applies to large US technology companies. The details of the agreement could also serve as a guide for other countries when negotiating similar pacts.