Business reporter, BBC News<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n The UK and the US have reached a deal over tariffs on some goods traded between the countries.<\/p>\n President Donald Trump’s blanket 10% tariffs on imports from countries around the world still applies to most UK goods entering the US.<\/p>\n But the deal has reduced or removed tariffs on some of the UK’s exports, including cars, steel and aluminium.<\/p>\n Here’s an at-a-glance look at what’s in the deal.<\/p>\n<\/div>\n Trump declared on social media this announcement would be a “major trade deal” – it’s not.<\/p>\n He does not have the authority to sign the type of free-trade agreement India and the UK finalised earlier this week – this lies with Congress.<\/p>\n Congress would need to approve a trade agreement, which would take longer than the 90-day pause in place on some of Trump’s tariffs.<\/p>\n This is an agreement which has reversed or cut some of those tariffs on specific goods. <\/p>\n It is only the bare bones of a narrow agreement, there will be months of negotiations and legal paperwork to follow. <\/p>\n<\/div>\n Trump had placed import taxes of 25% on cars and car parts coming into the US on top of the existing 2.5%.<\/p>\n This has been cut to 10% for a maximum of 100,000 UK cars, which matches the number of cars the UK exported last year.<\/p>\n But any cars exported above that quota will be subject to a 27.5% import tax.<\/p>\n Cars are the UK’s biggest export to the US – worth about \u00a39bn last year.<\/p>\n Jaguar Land Rover, which exports almost a quarter of its cars to the US, said the deal “secures greater certainty for our sector”.<\/p>\n But car industry leaders have told the BBC the quota could effectively put a ceiling on the number they can export competitively.<\/p>\n The UK currently imposes a 10% levy on US car imports, but it is not clear if there is any change to this. <\/p>\n The US has previously demanded the tax be cut to 2.5%, and Chancellor Rachel Reeves had indicated she is open to such a cut.<\/p>\n Trump also announced that Rolls-Royce engines and plane parts will be able to be exported from the UK to the US tariff-free.<\/p>\n<\/div>\n A 25% tariff on steel and aluminium imports into the US that came into effect in March has been scrapped.<\/p>\n This is good news for firms such as British Steel which was brought under government control as it struggled to stay operational.<\/p>\n However, the White House said it would impose a quota on the “most favoured nation rates for UK steel and aluminium and certain derivative steel and aluminium products.”<\/p>\n It is currently unclear how much of these products the UK will be able to export to the US under this quota system without paying more.<\/p>\n It is also unclear whether the scrapping of tariffs will apply to steel derivative products and whether only steel melted and poured in the UK will benefit.<\/p>\n The UK exports a relatively small amount of steel and aluminium to the US, about \u00a3700m in total. <\/p>\n However, the tariffs also cover products made with steel and aluminium, including things such as gym equipment, furniture and machinery.<\/p>\n These are worth much more, about \u00a32.2bn, or about 5% of UK exports to the US last year.<\/p>\n Industry body Steel UK said there were “a number hoops to jump through before the UK steel sector can see the benefits of this deal”.<\/p>\n It said firms needed to know what supply chain conditions need to be met, what the quotas are and when they take effect.<\/p>\n<\/div>\n What will be agreed on pharmaceuticals is still unknown with the UK saying work would continue on this and the remaining reciprocal tariffs. <\/p>\n The US said both countries would “promptly negotiate significantly preferential treatment outcomes on pharmaceuticals”.<\/p>\n Pharmaceuticals are a major export for the UK when it comes to US trade \u2013 last year sales of these products were worth \u00a36.6bn making it the UK’s second-biggest export to the US.<\/p>\n It’s also America’s fourth biggest export to the UK, valued at \u00a34bn last year.<\/p>\n Most countries, including the US, imposed few or no tariffs on finished drugs, as part of an agreement aimed at keeping medicines affordable.<\/p>\n The president has not announced any trade restrictions on medicines yet. <\/p>\n<\/div>\n There was no change to the UK’s 2% digital services tax in this deal and it appears to be a sticking point.<\/p>\n Businesses that run social media, search engines or online marketplaces have to pay it if they receive more than \u00a3500m in global revenues and \u00a325m from UK users annually.<\/p>\n But this threshold is easily met by US tech giants like Meta, Google, Apple.<\/p>\n The UK reportedly netted nearly \u00a3360m from American tech firms via the tax in its first year.<\/p>\n The UK government said it had “agreed to work on a digital trade deal”.<\/p>\n But the US government said it was “disappointed that the UK was unwilling to agree to fully address the tax.<\/p>\n “It is discriminatory, unjustified, and should be removed promptly,” it said.<\/p>\n<\/div>\n US beef exports to the UK had been subject to a 20% tariff within a quota of 1,000 metric tons. The UK has scrapped this tariff and raised the quota to 13,000 metric tonnes, according to the White House document.<\/p>\n In return, the UK has been given a tariff-free quota for 13,000 metric tonnes of exports, which trade ministers said was the “first time” British farmers had been given this kind of deal.<\/p>\n Crucially, there will be no weakening of UK food standards on imports as part of this deal, the UK government statement said.<\/p>\n Many American farmers use growth hormones as a standard part of their beef production, something that was banned in the UK and the European Union in the 1980s.<\/p>\n The US has previously pushed for a relaxation of rules for its agricultural products, including beef from cattle that have been given growth hormones.<\/p>\n This is an area where the UK has chosen alignment with EU – and the forthcoming “Brexit reset” with the EU – over the US.<\/p>\n The tariff on ethanol coming into the UK from the US has also been scrapped.<\/p>\n The National Farmers Union said the inclusion of “a significant volume of bioethanol [a renewable fuel made from crops] in the deal raises concerns for British arable farmers”.<\/p>\n<\/div>\n<\/div>\n![\"Getty](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/2121\/live\/22afc200-2bee-11f0-ac4d-93af73254e07.jpg.webp\")
Getty Images<\/span><\/div>\n<\/div>\n<\/figure>\nThis isn’t a trade deal<\/h2>\n<\/p>\n
Car tariffs cut to 10%<\/h2>\n<\/p>\n
No tariffs on steel and aluminium<\/h2>\n<\/p>\n
Pharmaceuticals still the big unknown<\/h2>\n<\/p>\n
No change on digital services tax <\/h2>\n<\/p>\n
No drop to food standards<\/h2>\n<\/p>\n