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U.S.-UK Economic Prosperity Deal
Also known as: U.S.-UK Economic Prosperity Deal, US-UK Economic Prosperity Deal
Facts (11)
Sources
Tracking Trump's Trade Deals | Council on Foreign Relations cfr.org Mar 17, 2026 11 facts
quotePresident Trump stated regarding the US-UK Economic Prosperity Deal: “turning out to be, really, a great deal for both countries.”
claimThe US-UK Economic Prosperity Deal includes provisions for negotiating digital trade commitments to support the United States' position at the World Trade Organization.
claimThe US-UK Economic Prosperity Deal establishes a new tariff baseline, maintaining the Liberation Day 10 percent rate and increasing the import quota for beef, which the United Kingdom reciprocated.
accountThe U.S.-UK Economic Prosperity Deal was announced on May 8, 2025, and its text was concluded on the same day, marking the first deal secured by the Trump administration.
perspectiveInu Manak, a senior fellow for international trade at the Council on Foreign Relations, argues that the US-UK Economic Prosperity Deal is not a traditional trade agreement but a framework for future talks, representing a new US trade policy approach where deals are subject to constant modification and threats of withdrawal.
measurementOn June 16, 2025, the White House issued Executive Order 14309, which implemented parts of the US-UK Economic Prosperity Deal, including a 100,000-vehicle quota at a 10 percent tariff rate for UK automotive imports, a 10 percent tariff on automotive parts, and an exemption for UK aerospace products falling under the WTO Agreement on Trade in Civil Aircraft.
claimThe US-UK Economic Prosperity Deal includes economic security commitments regarding nonmarket policies of third countries, investment screening, government procurement, and cooperation on duty evasion and transshipment.
claimThe U.S.-UK Economic Prosperity Deal is not a legally binding agreement and can be terminated at any time by either party with written notice.
claimThe US-UK Economic Prosperity Deal allows for future negotiations to lower tariff rates on aluminum, pharmaceutical products, and steel.
quoteThe U.S.-UK Economic Prosperity Deal has the stated objective "to grow the quality and volume" of trade, create "high-paying jobs and growth," reduce trade barriers to businesses and increase investments, and "to ensure that the Special Relationship is rooted in an enduring economic partnership that is fair, reciprocal, future-facing, and built on a shared vision of the challenges that face our economies."
claimThe US-UK Economic Prosperity Deal modifies Section 232 sectoral tariffs by providing the United Kingdom a 10 percent tariff rate for vehicle imports, replacing the 25 percent rate announced by President Trump on March 26, 2025.