President Donald J. Trump and Prime Minister Sir Keir Starmer yesterday jointly announced the launch of the groundbreaking U.S.-UK Economic Prosperity Deal (EPD), a first-of-its-kind initiative designed to promote mutual prosperity and strengthen the economic relationship between the United States and the United Kingdom.
The Economic Prosperity Deal, forged to enhance the bilateral trade partnership, will focus on three core objectives, all built upon a foundation of fairness, reciprocity, and future-facing collaboration. The agreement promises to create good, high-paying jobs in both nations and generate sustainable economic growth. The shared commitment between governments aims to create more opportunities for businesses, consumers, and workers.
The three primary goals of the EPD are:
- Expanding Trade: Grow the quality and volume of mutually beneficial trade between the two countries, fostering job creation and economic growth.
- Removing Barriers: Eliminate obstacles to business, investment, and trade, ensuring a smoother operating environment for American and British companies.
- Strengthening the Special Relationship: Cement the U.S.-UK economic partnership as fair, reciprocal, and durable, rooted in shared goals and an understanding of the global challenges facing both nations.
“Today marks a historic moment for both the United States and the United Kingdom. This deal is not just a trade agreement; it’s a shared vision for a future built on economic prosperity, fairness, and security,” said President Trump. “Together, we will remove barriers, grow jobs, and ensure that our Special Relationship remains strong for generations to come.”
Prime Minister Sir Keir Starmer echoed the sentiment, saying, “This deal reflects the ambition we both share for our nations: to create a stronger, fairer, and more prosperous future. The U.S.-UK Economic Prosperity Deal is a transformative step that will benefit our businesses, workers, and consumers alike, ensuring that the UK and the U.S. continue to lead the world in economic growth and innovation.”
Key Provisions of the U.S.-UK Economic Prosperity Deal:
- Tariff Reductions and Trade Facilitation:
The UK will reduce tariffs on a range of U.S. goods, while the U.S. will reciprocate with similar reductions on British products.
U.S. beef exports to the UK will benefit from the removal of a 20% tariff, and both countries will negotiate preferential quotas on agricultural products, including U.S. ethanol and UK steel and aluminum.
The two nations also agreed to address specific sectors, including pharmaceuticals and automotive products, to achieve significantly preferential treatment.
- Tackling Non-Tariff Barriers:
Enhanced cooperation on agricultural trade and a commitment to work together to improve market access.
Both countries will harmonize standards on goods and services, addressing mutual recognition and conformity assessment procedures.
Strengthening the digital trade landscape, including paperless trade and enhanced cross-border digital services provisions.
- Economic Security and Cooperation:
The U.S. and UK will intensify efforts to tackle non-market policies from third countries, secure supply chains, and reinforce defense preparedness.
Bilateral commitments on government procurement, investment security, and combating customs evasion will also be pursued under the EPD.
- Long-Term Commitment to Shared Values:
Both countries reaffirm their dedication to the protection of intellectual property rights, labor standards, and environmental policies.
The agreement also commits to reviewing the deal periodically and making adjustments to ensure it continues to serve both nations’ interests.
- Expanding Digital and Technological Cooperation:
The EPD envisions a deeper collaboration on emerging technologies, including discussions for a transformative technology partnership.
Looking Ahead:
Negotiations for the full implementation of the EPD are set to begin immediately. Once formalized, the agreement will be continuously reviewed and expanded to include additional areas of mutual interest.
“The U.S.-UK Economic Prosperity Deal represents the beginning of a new chapter for the Special Relationship,” said President Trump. “Through this deal, we are reaffirming our shared values and building a more prosperous future for both our nations.”
The agreement took effect on May 8, 2025, and is expected to evolve over time, with both countries committed to deepening their economic ties and addressing new opportunities and challenges in the global economy.
