Donald Trump’s so-called “full and comprehensive” trade deal with the United Kingdom will do virtually nothing to lower prices for American consumers. Last year, U.S.-imported goods from the U.K. accounted for just 2 percent of all goods imported into our nation. And this “deal” comes at the same time that the first post-tariff cargo ships are arriving at U.S. ports – half full. The shortages and higher prices economists have warned about will soon be a reality for all American families, thanks to Trump’s tariff taxes.
UK-US Trade Deal Is “Limited In Scope.” According to CNN, the agreement with the UK is “limited in scope, heavy on future commitments and leave in place the existing 10% universal tariffs Trump placed on virtually all goods coming into the United States during his ‘Liberation Day’ announcement on April 2.”
- Agreement Is Not “A Comprehensive Trade Agreement.” The Wall Street Journal reports, “U.K. officials said the pact won’t be a comprehensive trade agreement and will instead focus on reducing tariffs in specific sectors. They said some details remain yet to be finalized, which could mean further talks in the future.”
- UK Officials Said The Agreement Is “Limited” And Has “Never Been Billed As A Full-Scale Free Trade Pact.” Bloomberg reports, “Despite Trump’s language, any agreement is likely to be limited. The UK-US deal has never been billed as a full-scale free trade pact, which typically take years to negotiate. A UK official said Thursday’s announcement will set out general terms and focus on specific sectors.”
- Economist Justin Wolfers: Trump’s UK-US trade deal is just a “photo op with little macroeconomic significance.”
A Deal For The Rich: Everyday Goods? Tariffed. Luxury Cars? Tariff Free. Commerce Secretary Lutnick confirmed that the deal leaves 10 percent tariffs in place for most imported goods, but exempts Rolls Royce engines as tariff free.
KEY FACTS
- The 10 percent baseline tariff will remain in place on all imports from the UK.
- The United Kingdom accounts for just 2 percent of U.S. trade – leaving the remaining 98 percent of U.S. trade unaccounted for.
- Before Trump’s tariffs, the U.K. only charged average tariffs of 1 percent.
- The U.S. was already in a trade surplus with the U.K. before Trump’s trade war; in 2024, the U.S. exported billions of dollars more goods to the U.K. more than it imported.
- Most trade between the U.S. and U.K. is services, which were not affected by Trump’s tariffs.