Trump Agrees to Preliminary Trade Deal with UK, Reducing Tariffs on Autos, Steel, Aluminum While Maintaining 10% Baseline

President Donald Trump has agreed to a preliminary trade deal with the United Kingdom, which includes reducing tariffs on U.K. autos, steel, and aluminum. The agreement, announced on Thursday, maintains a baseline 10% tariff on most U.K. goods entering the U.S., reflecting Trump's broader tariff strategy aimed at reshaping global trade dynamics. The deal specifies that tariffs on U.K. autos will be reduced from 27.5% to 10% for the first 100,000 vehicles imported annually, while tariffs on steel and aluminum will be eliminated. This adjustment in Trump's tariff policy was negotiated with U.K. Prime Minister Keir Starmer and involves key figures such as Commerce Secretary Howard Lutnick, Vice President JD Vance, and British Ambassador Peter Mandelson. Despite this agreement, Trump has emphasized that the 10% baseline tariff will remain in place for all countries, including the U.K., as part of his ongoing trade negotiations. This stance was reiterated by White House Press Secretary Karoline Leavitt, who stated that the president is committed to maintaining the 10% tariff across the board. The deal also promises increased U.S. exports of ethanol and beef to the U.K., along with streamlined customs processes for American goods. Trump has also indicated that tariffs on other countries could be set higher than the 10% baseline, with potential rates reaching up to 60% for nations with trade deficits with the U.S. This approach underscores Trump's determination to leverage tariffs to address what he perceives as unfair trade practices. Additionally, an unspecified British company is set to purchase $10 billion in aircraft from Boeing as part of the deal.