In a splashy White House moment, U.S. President Donald Trump and UK Prime Minister Keir Starmer stood together to unveil what was touted as a landmark “Economic Prosperity Agreement.” The agreement, rolled out with fanfare, vowed to reduce U.S. tariffs on major UK exports—steel, aluminum, and cars—and create new avenues for farm trade. But several weeks later, British exporters remain in limbo, waiting for those changes to be implemented.
A Deal Done, But Not Brought Home
The deal, reached in early May, was meant to eliminate the 25 percent tariffs on UK steel and aluminum and to slash auto export duties drastically. Under the pact, 100,000 annually produced cars from the UK would be subject to only a 10 percent tariff, down from the punishing 25 percent previous levy. Above that number, the 25 percent remains. For steel and aluminum, the full tariff rollback was agreed to—so long as exports don’t exceed set quotas.
Far from the pomp and ceremony of the announcement, companies on both the Atlantic and European sides report nothing new on the ground. British manufacturers continue to be charged the full tariff rates, as legal and administrative processes needed to actually complete the deal remain unresolved. Officials say it could be weeks—or months—before exporters experience in-world relief.
Frustration Grows in Top Industries
For top UK exports such as Jaguar Land Rover and Tata Steel, the delay is more than a bureaucratic hassle—it’s an expensive barrier. Jaguar Land Rover informed British lawmakers that some of the cost of tariffs is being transferred to U.S. consumers, while also jeopardizing the volume of shipments. Tata Steel estimated £100–150 million of its yearly exports remain vulnerable to high tariffs.
In private, industry leaders are becoming increasingly frustrated. One business leader said, “Both nations marketed their announcement as if the deal was concluded… but until it’s concluded, it’s not concluded.” Industry sources fear that orders worth millions of pounds are at risk unless the reforms are put in place quickly.
The slowdown comes from complicated fine print not settled yet. U.S. and UK authorities are still negotiating the details of quotas on products, autos rules of origin, and the rules of sources that exclude Chinese-produced components. Even agricultural elements—such as how many UK beef could find their way into the U.S. market—aren’t settled yet.
British Trade Secretary Jonathan Reynolds has been working on accelerating the process, especially during recent meetings in Paris with G7 trade ministers. He is demanding clarity on when UK industries can finally begin shipping tariff-free goods under the terms of the agreement.
Meanwhile, there are hints that this agreement is just the start. British officials are looking for wider talks to reduce Trump’s standard 10 percent baseline tariff and cut back on non-tariff barriers, like redundant regulations and inspection procedures.
Industry at a Crossroads
UK car exports to the U.S. topped £9 billion last year, making the U.S. Britain’s largest goods export market. The promise of tariff relief is a welcome development, particularly for auto manufacturers, who now face a quota-based reprieve. For the steel sector, the move could provide much-needed stability amid global pressures.
Nevertheless, critics are demanding transparency. Critics say the UK government should be more transparent regarding the implementation timeline. As one opposition politician reminded, “The tariffs remain just the same as before and no deal has materialized.”
And there’s a political twist: President Trump has maintained the power to raise tariffs to 50 percent if the UK doesn’t live up to certain terms by July 9—including changes to supply chains and increased access to the UK beef market for U.S. producers.
A Symbolic Victory or Actual Change?
The UK is the sole nation to date that has achieved a sector-specific tariff agreement with the Trump administration—without even a comprehensive free trade agreement on the books. That provides the agreement with symbolic value, but utilitarian benefits are currently absent until legal constructs are implemented.
For the moment, the agreement hangs in suspended animation. British exporters are cautiously optimistic, but every day that passes risks making what was greeted as a milestone another case of political spectacle ahead of policy delivery.
