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UK-US economic deal: what has been announced?

Prime Minister Starmer and President Trump announced a new UK-US Economic Prosperity Deal on Thursday 8 May

09 May 2025, 3 min read

What are the aims of the US-UK Economic Prosperity Deal?

The Economic Prosperity Deal (EPD) has three core objectives:

  1. Grow the quality and volume of mutually beneficial trade between the US and UK
  2. Remove barriers to make it easier for businesses to operate, invest and trade in both countries
  3. Ensure the Special Relationship is rooted in an enduring economic partnership that is fair, reciprocal, future-facing and built on a shared vision.

Heads of terms have been agreed and negotiations will now immediately begin to formalise the proposals. Alongside negotiations for the EPD, discussions continue for a bilateral technology partnership.


What has been announced in the EPD?


Addressing tariffs

  • Tariff rates: both countries will reduce applied tariff rates on a preferential basis on each other's products as soon as possible. The US will also provide certain key UK imports with modified reciprocal tariff treatment, in line with

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