On the 8th of May 2025, the White House announced that a historic US-UK Trade Deal had been reached.

Daniel Hamilton has voiced his opinion on what this trade deal means for Trump’s trade agenda. Hamilton notes “The deal also raises questions about the role the U.K. might play in Trump’s efforts to upend the current international trade regime. Under current World Trade Organization rules, when a country agrees to lower its tariffs on goods and agricultural products for one country, it agrees to do so for all countries, unless those tariffs are part of a deal that covers substantially all trade. This “most favored nation” (MFN) approach is a bedrock principle of global commerce. Trump challenged this principle when he announced that his administration would calculate different tariff rates for different countries based on an internal assessment of their trade and non-trade barriers. If the U.K. agrees to offer preferential tariff concessions to the United States but not to its other trading partners, it could face international legal challenges and potential retaliation from other countries. Global trading arrangements would be weakened, and Trump’s disruption agenda would be strengthened.”(Hamilton.2025) As Hamilton has laid out, the trade deal does not fully adhere to WTO regulations and seems to be in line with Trump’s disruption agenda to global trade. Furthermore, other nations who have faced stringent tariffs could launch legal challenges and retaliatory measures as a result.

The UK government released a press release that speculated on the potential benefits the US-UK trade deal had for the UK. The Government’s press release states “Britain secures the first US trade deal protecting British business and British jobs, the second landmark deal in Britain’s national interest in a matter of days following the India deal … Prime Minister delivers on his promise to save UK steel and British car makers – saving thousands of jobs across the country … US tariffs on automotives immediately slashed from 27.5%, with steel and aluminium reduced to zero … Unprecedented market access for British farmers with protections on food standards maintained” (UK Government.2025). As the UK Government has announced, the trade deal potentially saves thousands of jobs in agriculture, steel and the automotive industry as well as millions of pounds likely saved in tariff reductions.

It remains to be seen how much of a positive impact the trade deal will have on the UK economy, but the provisions of the deal give space for tempered optimism.