A UK-US trade deal is announced - but is it as ‘full and comprehensive’ as President Trump claims?
The UK and the United States today announced a “landmark economic deal” between the two countries—the first such agreement the US has reached on trade since President Donald Trump introduced wide-ranging tariffs on US imports.
Ahead of the announcement Mr Trump described the deal as “full and comprehensive”, and later told reporters when questioned on this point that the agreement was “maxed out”.
But in reality, the deal announced today covers only a limited set of measures involving specific sectors. The UK Department for Business and Trade has confirmed to Full Fact that it does not constitute a fully-fledged Free Trade Agreement (like that agreed between the UK and India earlier this week).
Today’s agreement includes a reduction in tariffs on UK car exports to the US, as well as the elimination of US tariffs on UK steel and aluminium exports.
The White House also says the deal will “significantly expand US market access in the UK”, in particular for agricultural exports.
A UK government press release said that “work will continue on the remaining sectors—such as pharmaceuticals and remaining reciprocal tariffs”, but added that the US had agreed to give the UK “preferential treatment in any further tariffs imposed”.
The full text of the deal is still to be published and neither party has confirmed when the measures agreed will take effect—at a press conference this afternoon the Prime Minister Sir Keir Starmer said the tariff reductions would “come into place as soon as possible”.
Meanwhile, during today’s announcement US commerce secretary Howard Lutnick claimed that the UK government “nationalised British steel” as part of the deal. This is not technically the case.
British Steel has not been nationalised, because the government has not taken full ownership and control of the company.
Last month the government passed emergency legislation to enable it to take control of British Steel’s Scunthorpe plant to prevent its Chinese owners, Jingye, from allowing it to close. The government gained the ability to reinstate sacked staff or enter the plant to prevent the blast furnaces from being turned off, but ownership remains with Jingye for now. Ministers have indicated however that full nationalisation remains a possibility, especially if no other buyer is found.
Finally, Donald Trump described the UK as the US’s “oldest ally, or just about”. That’s highly debatable—as Mr Trump himself seemed to acknowledge when he then added that a “couple of people claim that too, but let’s put it right at the top”.
Many—including Mr Trump himself previously—have argued that it is actually France which should be considered the US’s oldest ally. Welcoming French president Emmanuel Macron to the White House in February, Mr Trump said: “France is America’s oldest ally. Our cherished partnership has been a force for freedom, prosperity, and peace from the very beginning.”
This is a reference to the French monarchy recognising the United States as an independent country in 1778, two years after the signing of the Declaration of Independence. France also provided critical support for the American colonies against the British in the American War of Independence.
Others may point to Morocco, which was the first country to publicly recognise the United States of America with a decree in 1777.
The UK officially recognised the US by signing the Treaty of Paris in 1783, after the end of the War of Independence—though the countries fought again in the War of 1812.