Under the agreement, which has yet to be formally signed , Britain will increase its imports of American beef and ethanol, while tariffs on British exports, particularly in the automotive and metals sectors, will be reduced.
During a press conference in the Oval Office, Trump said, "The final details are being worked out, and we expect to reach a final agreement in the coming weeks."
He explained that the agreement would enhance opportunities for American companies in the British market and simplify customs procedures for American goods. Trump also praised the agreement, describing it as a "breakthrough."
For his part, British Prime Minister Keir Starmer, in a phone call with Trump, considered the agreement a "significant step forward" in economic relations between the two countries.
Starmer stressed that the timing of the announcement carries special symbolism, as it comes on the anniversary of the Allied victory in World War II.
Starmer said: "Eighty years after a similar historic agreement, Britain and the United States are reaffirming their strategic alliance at a pivotal moment in global economic transformation."
In a speech to Jaguar Land Rover factory workers, Starmer praised the agreement, asserting that it would protect thousands of jobs in the British automotive industry.
"This is just the beginning, and we are working on further details to reduce trade barriers with the United States and other markets," he added.
Regarding tariffs, US Commerce Secretary Howard Lutnick announced that the general 10% tariff will remain in place on most imports, but that the duty on British cars will be reduced from 27.5% to 10% for a quota of 100,000 vehicles per year, and that the 25% duty on British steel and aluminum imports will be eliminated.
However, Trump warned that this agreement does not necessarily represent a model for trade relations with other countries, indicating that the United States will continue to use tariffs as a leverage in any future negotiations.
"Ten percent is still low, and we will demand more than that in our upcoming agreements," he said, affirming his continued hardline approach to reshaping the global trading system in accordance with US priorities.
This agreement is the first of its kind since Trump launched his strategy to restructure international trade by imposing broad tariffs, aiming to encourage domestic manufacturing and reduce the trade deficit, amid economic criticism and warnings of a global growth slowdown.