Businesses Welcome US Trade Deal, But Critics Warn of Limited Gains

Critics say the UK gave up long-term leverage for short-term fixes, as farmers and MPs call for more transparency and protections.

UK Prime Minister Keir Starmer and U.S. President Donald Trump shake hands after a joint press conference at the White House in Washington on Feb. 27, 2025.Madalina Vasiliu/The Epoch Times

Despite celebrations in Downing Street and cautious optimism from business leaders, concerns persist over the limited scope of the U.S.–UK trade deal, the concessions made, and its long-term implications for sectors such as agriculture.

Prime Minister Sir Keir Starmer announced the Economic Prosperity Deal (EPD) on Thursday, describing it as a “historic” agreement that slashes U.S. tariffs on British automotive, steel, and aluminium exports, safeguarding thousands of British jobs in key industries.

The United States will reduce car tariffs from 27.5 percent to 10 percent for 100,000 vehicles annually, while steel and aluminium duties will fall to zero.

“That is a deal will protect British businesses and save thousands of jobs in Britain, really important, skilled, well-paid jobs,” said Starmer.

The agreement, which follows closely on the heels of the UK–India trade deal, has been framed by Downing Street as proof that Britain is back at the table globally after a period of economic uncertainty.

Across the Atlantic, President Donald Trump said the deal with one of Washington’s “closest and most cherished allies” affirms that “reciprocity and fairness is an essential and vital principle of international trade.”

Businesses Cheer but Call for More

Reactions from industry have been broadly positive. Jaguar Land Rover’s CEO Adrian Mardell welcomed the certainty the deal provides, calling it “vital to the UK’s economic prosperity.”

The automotive sector, currently burdened by U.S. tariffs, is expected to see hundreds of millions of pounds in savings.

The Society of Motor Manufacturers and Traders (SMMT) echoed this sentiment, adding it will “provide much needed relief” and allow the industry to “approach the future more positively.”

Gareth Stace, director general of UK Steel, also hailed the removal of 25 percent tariffs as a “major relief” for a sector still grappling with global overcapacity, high energy costs, and weak demand.

Yet many voices across the business community cautioned that the deal, while significant, is no substitute for a full free trade agreement.

“This deal is a win for the UK,” said Emma Rowland of the Institute of Directors.

However, she cautioned that it falls short of the full free trade agreement pursued by the government.

“Meanwhile, the 10 percent tariff still puts the UK at an economic disadvantage in comparison to the pre-tariff environment. However, bringing down tariffs on US imports of British cars, steel and aluminium provides competitive advantages for UK firms. The announcement also gives hope for further collaboration on science and technology,” she added.

Shevaun Haviland of the British Chambers of Commerce warned that “this must not be the end of the process,” urging continued negotiations, particularly in digital trade and services.

Agricultural Concerns Cloud Rural Response

The National Farmers’ Union (NFU) has expressed concern about concessions made on beef and ethanol, warning that UK agriculture may be shouldering too much of the cost of securing relief for industrial exporters.

Under the deal, the UK will allow 13,000 tonnes of hormone-free U.S. beef and 1.4 billion litres of ethanol tariff-free, quotas some fear could undercut domestic producers.

NFU President Tom Bradshaw praised the government for “maintaining high standards,” but said the decision to open the ethanol market risks harming UK arable farmers.

“Today is the start, not the end,” the NFU said, calling for better protection in future negotiations.

NFU Scotland raised similar concerns, noting the need for a “level playing field” and clarity on what the agreement means for Scottish farmers.

Conservative Party leader Kemi Badenoch and Prime Minister Sir Keir Starmer attend the service of thanksgiving at Westminster Abbey in London on the 80th anniversary of VE Day in London on May 8, 2025. Aaron Chown - WPA Pool/Getty Images

Opposition Warns of ‘Patch’ Deal

While the government has painted the deal as a diplomatic breakthrough, opposition politicians have accused Starmer of overselling a modest win.

Andrew Griffith MP, the shadow business and trade secretary, dismissed the agreement as “a big oversell” and called it a “Diet Coke deal, not the real deal we were promised.”

He claimed that “British exporters are still paying higher tariffs than two months ago,” and that the deal “falls a million miles short” of the full free trade agreement pursued by previous governments.

“This isn’t a historic deal – it’s a patch,” Griffith said.

Conservative Party leader Kemi Badenoch, who had previously pressed the government to secure a trade deal with the United States to protect British industries from new U.S. tariffs, has criticised the agreement, describing it as little more than damage control.

“This isn’t a free trade agreement — it’s a small tariff deal to fix some of the changes Donald Trump made last month. We’re now in a worse position than we were in March. That’s not something to write home about,” Badenoch said.

She accused Starmer of overselling the deal, adding: “If he had come out and said we are trying to fix the a problem that was created last month, I think we would have understood that. But calling it a historic deal is trying to sell people a pup.”

Liberal Democrat leader Ed Davey raised concerns about the impact of the trade deal on British farmers and called for greater parliamentary oversight.

“The government’s got to publish this deal and allow MPs to scrutinise it and vote on it,” he said.

Davey also criticised the limited scope of the agreement, warning that “even after today’s deal, Trump’s terrible tariffs will still be hitting British jobs and businesses hard.”

He argued that the only way to end what he called a “damaging trade war” was by “standing tough with our allies across Europe and the Commonwealth.”

His remarks come as Starmer prepares to host EU leaders in London on May 19 for a UK–EU summit, aimed at resetting relations with Britain’s largest trading partner.

Bank of England Governor Andrew Bailey echoed the importance of revitalising EU ties.

In a BBC interview, he said reversing the post-Brexit decline in UK–EU trade would be “beneficial” and suggested the U.S. deal could serve as a model for broader international engagement.

PA Media contributed to this report.