US-UK trade deal: Trump sticks with 10% Britain tariffs but reduces taxes on cars and metals; what we know so far

US-UK trade deal: British Prime Minister Keir Starmer on Thursday announced a "historic" trade deal with the United States from the Tata Motors-owned Jaguar Land Rover (JLR) factory in northern England.

After a telephonic conversation with US President Donald Trump, Starmer said that auto tariffs have been cut from 27.5% to 10%.

This will be applicable for one lakh UK cars, which is nearly the total number of cars Britain exported last year.

"We are the first country to secure such a deal with the United States, and in an era with global insecurity and instability that is so important," said Starmer, adding, "We are sending a message to the world that Britain is open for business, striking trade agreements with India on Tuesday and with the US today and working to boost trade with other partners too, including, of course, the EU (European Union), with whom we have a really important meeting a week on Monday."

Apart from cars, the US also cut import taxes on steel and aluminium to zero from 25% earlier. UK farmers will also be eligible for a tariff-free quota of beef. Moreover, ethanol, which is used to produce beer, will attract zero tariffs for the UK.

Meanwhile, Trump's baseline 10% tariffs on British products will stay in place.

Trump called the 10% tariff rate on the UK a "low number" and said other nations would face higher taxes in their deals as America runs trade deficits with them.

The UK government said it would bring down tariffs on 2,500 US goods such as olive oil, wine and sports equipment, taking the average tariff rate to 1.8%.

This development comes days after the landmark India-UK Free Trade Agreement (FTA) that will make imports of cars and whisky cheaper from Britain and will eliminate taxes on exports of clothing, leather, and footwear.

The deal seeks to double trade between the two nations to USD 120 billion by 2030.

"With India, I met Prime Minister Modi at the G20 in Brazil, we agreed that we would get our teams to work together at pace in a respectful, courteous, business-like way, with President Trump we’ve operated in the same way... The same with the EU, respectfully negotiating in relation to the summit we'll have a week on Monday,” Starmer said.

Downing Street also said that it is working to reduce tariffs on pharmaceuticals and other sectors.