The winners and losers of Donald Trump’s trade deal with Britain

The leaders of the United States and the United Kingdom praised the commercial signature between the two sides on Thursday as “historic”, but experts have warned that it is still leaving the UK facing a higher tariff for exports to the United States by Donald Trump.

While the 10 percent introductory tariff around the world imposed by Trump in April is still existing, the UK won great privileges on steel and cars Definitions Trump increased an additional 25 percent in February and March.

On the other hand, and UK The United States gave the largest arrival of beef, ethanol and industrial products, which raised fears that the UK market had risked American products.

UK negotiators have avoided moving away in political controversial areas, such as limiting the UK digital services tax, opening health care markets for American companies or making changes to the rules of food standards in the UK to allow products such as chlorine chlorine and hormone treated beef.

Mattia de Opaldo, the main research colleague at International Trade at the University of Sussex, said that the deal left the United Kingdom in a “much worse position” in its bilateral trade conditions with the United States more than a year – but now with a competitive advantage against some other countries.

economy

Economists said the deal will lead to relief industries at a high risk of definitions, but it will not make a difference in the total economic expectations in the United States or the United Kingdom. They suggested that the United States will also struggle to conclude meaningful deals with other countries.

Michael Pears said in Oxford Economic Consulting that the limited relief from the tariff of cars, steel and aluminum “resurrected” with an effective tariff rate in the United States, but the average customs tariff was still to remain in double numbers, and the American consumers severely hit.

“We do not expect this to lead to a noticeable effect on the gross domestic product in the UK,” said Pimco’s economist in Pimco. “The continuous financial tightening policy and the Policy (Bank of England) remains more important in expectations.”

Paul Dales, UK economist at Capital Economics, said that the effective US import tariff in the UK will reach about 11 percent as a result of the arrangement, which is much higher than 1 percent that was present last year. This was an improvement on 13 percent previously an agreement on Thursday, but it relied heavily on US future measures on critical sectors such as drugs.

Cars

Britain’s executive officials welcomed the deal widely, which conducted a possible tariff of 27.5 percent to 10 percent for the first 100,000 cars shipped from the United Kingdom.

The new shares represent almost all 101,870 vehicles that were exported to the United States last year, according to the Association of Automobile Manufacturers and Traders.

“The application of these definitions was a great and immediate threat to the UK car exporters, so this deal will provide the relief that is intensified.”

Adrian Merdale, CEO of Jaguar Land Rover, the largest exporter of cars in the United Kingdom to the United States, described the deal as “great progress” in providing “the certainty we need to continue investing to move forward.”

But he warned that “this has not been done for the UK,” hoping that future negotiations will give up in a timely manner.

Another executive official said, “It is not without its challenges but it can be controlled,” said another executive official.

Although the auto industry in Britain depends heavily on European exports, cars are the largest export component in the United Kingdom to the United States, as it represents sales of 6.4 billion pounds. It is also the largest high -end brand market like JLR’s Range Rover as well as Bentley and McLaren, which has no manufacturing imprint in the United States.

outer space

The UK has also obtained a deal that would allow Rolls-Royce to export its engines into “tariff free” in the United States, although executives said they are still hoping that all flying spare parts will be exempt.

The shares in Rolls-Royce increased by 3.6 percent after the news. Meanwhile, the shares of Boeing Boeing in the United States increased by 2.8 percent on Thursday after US Minister of Commerce Howard Lootnick said that an airline in the UK was to buy $ 10 billion in the company’s aircraft. People familiar with the deal confirmed that the owner of British Airways was closed on Thursday night in a deal to buy Boeing 787.

The aviation industry, a large user of steel and aluminum, was rushing to adapt to Trump’s trade war, as the costs are already high through integrated supply chains.

Kevin Karrafen, CEO of ADS, Space and Defense Committee, said that although the American tariff by 10 percent “will remain in place, eliminating additional definitions on steel and aluminum is a great achievement.”

He added: “Getting rid of the reported customs tariffs on engines and parts of space is also very welcome news, although we are waiting for more specific details.”

Agriculture and food

Farmers welcomed the UK government’s commitment to maintaining British food standards and securing mutual access to cow meat trade, but they warned that the UK’s ethanol flood could hit farmers.

The White House said that the agreement would “expand” up to the American markets in the United Kingdom, citing an opportunity of $ 700 million to ethanol exports and an opportunity of $ 250 million for other agricultural products such as beef.

“Our biggest concerns are that two agricultural sectors were distinguished to bear the heavy burden to remove the customs tariff for other industries in the economy,” said Tom Bradchu, President of the UK farmers’ farmers.

NFU said that biofuels are “very important” for the agricultural crops sector in the United Kingdom. She said: “The liberalization of our ethanol market can be translated into the loss of this profitable port for our farm farms.” Ethanol is produced in the UK primarily from local wheat and imported corn.

The United Kingdom and the United States agreed to reach the “mutual” market on beef, as farmers in the United Kingdom obtained a share free of customs tariffs of 13,000 metric tons.

The White House said that the United Kingdom “unfairly” has maintained a tariff of up to 125 percent on “meat, poultry and dairy products above maintaining the non -based standards that negatively affect American exports.”

Before Trump imposed a 10 percent vitality tariff, the United States was applied on a 5 percent average agricultural tariff on UK imports, while the average tariff in the UK was 9.2 percent.

The Food and Drink Federation, the industry hall for food manufacturers, said that the 10 % customs tariffs still affect the food exporters in the United Kingdom, and many of them are smaller companies. The industry was sent at a value of 2.7 billion pounds to the United States in 2024.

steel

Weeks after the UK government intervened to save the last remaining steel steel ovens in Britain, the industry welcomed the deal to cancel the US tariff for the United States as “very significant.”

In February, weeks after arriving in his post, Trump represented an agreement between the United Kingdom and the United States under the leadership of former President Joe Biden and slapped the 25 percent definitions on all British and aluminum steel imports to the United States.

The United Kingdom, STEEL, Trade Authority, confirmed that some clarification of the conditions of the deal are still necessary, especially whether there are any chains related to steel to qualify for zero tax per cent, and when the change in the rules enter into force.

The United States is the second largest steel exports market from the United Kingdom, after Europe. In 2024, the United Kingdom exported 180,000 tons of semi -ending steel to the United States, at a value of 370 million pounds. This represents 7 percent of the total steel exports in the United Kingdom by size and 9 percent at value.

Pharma

The United States has agreed to give the UK’s preferential treatment on any tariff imposed as part of Washington’s ongoing investigations on whether drug imports and semi -conductors threaten national security, as the UK claimed.

Starmer praised the privilege as a step that would protect the United Kingdom “whatever happens in the future” – in reference to the fact that Trump is still thinking whether a tariff should be imposed on medicines.

London added that the deal also laid the basis for technology partnership in the United Kingdom in the future, in which the UK can cooperate in sectors such as biotechnology, life sciences, quantum computing, nuclear fusion, space and space.

The promises have sparked hopes in the pharmaceutical industry that the worst effects of Trump’s tariff in the future will be avoided, although the sector remains cautious without further details.

“It is good progress, but we just need to understand more about it,” said one of the characters in the industry. “All this adds up to a lack of clarity,” another said, however, pointing to the “positive framework.”

She participated in the reports of Peter Foster, Kahda Einagaki, Silvia Pfeifer, Madeleine Speed, Michael Bell, Jelian Pleimer, Wissam Fleming, Dolphin Strauss, Philip Georgidis in London, Andy’s limits in Brussels