The United States is our close ally and tech partner, and we are committed to ensuring that bond delivers real benefits for hardworking people on both sides of the Atlantic.

We look forward to resuming work on this partnership with the US as quickly as we can to achieve that and working together to help shape the emerging technologies of the future.

Most recently, we were pleased to announce advances in how we share cutting edge UK and US quantum research as well as TAE Technologies and the UK Atomic Energy Authority’s joint venture partnership to commercialise fusion technology in the UK.

The UK and the US have reached a deal which was announced on 8th May 2025. We continue to negotiate a wider economic deal with the United States that will further support our industries and safeguard jobs.

We have announced an additional £500 million in lending capacity under the Growth Guarantee Scheme (GGS), delivered by the British Business Bank and we are also expanding UKEF’s business support package by £20 billion, £10 billion of which will be used specifically for businesses impacted by the current US tariffs.

Businesses concerned about the impact of US tariffs can also find clear guidance on business.gov.uk.

The Government is committed to reinvigorating our capital markets to deliver growth, supporting firms to start, scale, list and stay in the UK.

We have already delivered an ambitious set of reforms including overhauling the Prospectus regime and Listing Rules, providing more flexibility to firms and founders raising capital on UK markets.

The Government's recently published Industrial Strategy sets out how we are supporting favourable conditions to drive investment in our highest growth sectors, and spur domestic businesses to scale up - supporting high-quality jobs across the UK. This includes increasing the British Business Bank’s total financial capacity to £25.6 billion – which will result in a two-thirds increase in support for innovative UK businesses.

The UK-US Economic Prosperity Deal is separate to our negotiations with other countries. We are working to improve our trading relationships with other nations alongside our work with the US. For example, the UK concluded a landmark trade deal with India on 6 May, and on 19 May the Prime Minister confirmed a new agreement with the European Union which will deliver on his core mission to grow the economy, back British jobs and put more money in people’s pockets.

The Government is disappointed by the announcement of an increase in tariffs, which are not in the UK’s national interest, and we understand businesses are concerned.

That is why the government has been focused on negotiating an economic deal with the United States, and we will continue to engage with the US to understand the details of how these tariffs will be implemented.

We remain resolute in our support for UK industry across the board. We have already heard from a number of business organisations including the CBI and the British Chamber of Commerce, that they support our approach and want us to continue working to secure an economic deal with the US. Ministers and officials will continue to meet with impacted stakeholders from a range of sectors.

We’re disappointed by the decision to impose global tariffs of 25% on the auto imports and know this will be deeply concerning for our automotive sector. We support our automotive industry, and in the first instance we will continue to pursue a deal that works for both us and the US.

We have backed the auto sector with £2 billion to support the transition of domestic manufacturing and £300 million announced in the Budget to drive uptake of electric vehicles. We will also use our Industrial Strategy to strengthen UK automotive competitiveness.

This government is clear that we will always do what is necessary to defend the UK’s national interest. This is why the government has launched a request for input from businesses to help shape our response to US tariffs.

The UK-US relationship is already very strong, with trade worth £315 billion in 2024, and shared investment of over £1.2 trillion at the end of 2023.

As you will be aware, on Tuesday 18 March, the Secretary of State for Business and Trade met with US Commerce Secretary Howard Lutnick, US Trade Representative Jamieson Greer and the Special Envoy to the UK Mark Burnett in Washington DC. The meeting followed last month’s agreement between the Prime Minister and President Trump that teams would start working together on an Economic Prosperity Deal, building on our shared strengths and commitment to economic security.

The Prime Minister has made clear that the UK is not choosing between the US and the EU. As set out by the Chancellor, we recognise that our markets are highly interconnected. This government's main priority is growing the UK economy - strengthening trade with our most economically important markets is a major part of that.

We are committed to continuing our work with both the US and the EU to remove barriers to trade and help UK businesses grow.

The UK-US partnership is a cornerstone of the transatlantic alliance and we look forward to working with President Trump in the coming years. Our trading relationship with the US is worth around £300 billion and we are each other’s single largest investors with £1.2 trillion invested in each other’s economies. We will explore various avenues to strengthen UK-US trade and support economic growth, alongside the development of our Industrial and Trade Strategies.

The EU and the US are two of our largest trading markets, together accounting for over 64% of total UK trade. We are committed to strengthening our trade and investment relationships with both the EU and US and to working together to remove unnecessary barriers to trade

As set out by the Chancellor, we recognise that our markets are highly interconnected. This government’s main priority is growing the UK economy – strengthened trade with our most economically important partners is a major part of that.

In December 2022 the Chancellor established the ‘Accelerated Settlement Taskforce’. This industry taskforce will examine the case for trades to be settled more quickly in the UK, such as moving to a ‘T+1’ standard settlement period. The full terms of reference can be found on gov.uk^[1]. The government looks forward to receiving the taskforce’s recommendations and setting out its next steps as appropriate.

[1] https://www.gov.uk/government/publications/accelerated-settlement-taskforce

The U.S. is our largest trading partner, with trade reaching over £290 billion this year, and our most important national trading partner in data-enabled exports. The UK exported over £75 billion worth of digitally delivered services to the U.S. in 2023.

Ministers and officials regularly engage with a wide range of stakeholders including business groups, civil society and SMEs in both the UK and the U.S. on a range of digital trade and wider trade matters.

The United States is not negotiating traditional FTAs with any country. On the 8th of June, the Prime Minister and the President announced a first-of-its-kind economic partnership. The Atlantic Declaration and accompanying Action Plan cover the full spectrum of our economic, technological, commercial and trade relations, and will explore ways to expand our bilateral trade, already worth £279 billion per year.

As part of the Declaration, we announced the immediate launch of negotiations on a Critical Minerals Agreement to ensure UK access to the US market for a strategically important sector of the UK economy and bolster vital supply chains.

The U.S.-UK bilateral investment relationship is the largest in the world, with £1.14 trillion in FDI stock supporting more than 2.7 million jobs in both countries.

On the 8th of June, the Prime Minister and the President announced a first-of-its-kind economic partnership. The Atlantic Declaration and accompanying Action Plan cover the full spectrum of our economic, technological, commercial and trade relations. On the same day, the PM announced more than £14bn of new investment in the UK by US companies.

More widely, the Government is investing £26 billion in the UK economy designed to unlock £90billion of private sector investment, both domestic and international, by 2030.

The United States is not negotiating traditional FTAs with any country. On the 8^th of June, the Prime Minister and the President announced a first-of-its-kind economic partnership. The Atlantic Declaration and accompanying Action Plan cover the full spectrum of our economic, technological, commercial and trade relations, and will explore ways to expand our bilateral trade, already worth £279 billion per year.

As part of the Declaration, we announced the immediate launch of negotiations on a Critical Minerals Agreement which will guarantee market access for a strategically important sector of the UK economy and bolster vital supply chains.

The UK is part of ongoing conversations with international allies, including the US on how best we can ensure maritime security in the Gulf and protect freedom of navigation. This is not connected to the United Kingdom's departure from the European Union.

Freedom of navigation is in every nation's interest; it is unacceptable to illegally seize a ship going about legitimate business in an internationally recognised shipping lane. Any action we take will be aimed at ensuring freedom of navigation is maintained.

We continue to work for stability in the region with the international community, and to uphold the international rules that protect us all.

The UK remains concerned about the current trade tensions which could adversely affect growth in global GDP. The IMF recently estimated this to be in the order of -0.5% of global GDP in 2020. The UK is engaging with partners across the globe to seek a resolution. We are clear that nobody benefits from trade wars.

The UK shares some of the US’s concerns with China’s trade practices and believes they should be addressed through structural reform in China and through multilateral cooperation, including ambitious reform of the World Trade Organization (WTO). The UK supports a global rules-based trade system. Any actions from either party must be WTO compliant.

The UK is committed to negotiating an ambitious free trade agreement with the United States as soon as we have left the European Union.

The President and Prime Minister have made clear on a number of occasions their shared commitment to an ambitious, wide-ranging free trade deal that reflects the strength of our bilateral relationship. We welcome the publication by the US Administration of their negotiating objectives for a free trade agreement with the UK as well as the President’s positive public comments during the recent state visit.

Although we cannot enter into negotiations with the US until we leave the EU, there is still much that we can do to lay the groundwork for an ambitious deal. This includes:

Completing our domestic UK processes so that we are ready to start negotiations;

Continuing our conversations with the Office of the US Trade Representative to prepare for live negotiations. These conversations are well advanced, including through the UK/US Trade and Investment Working Group, which has now met five times since it was established in July 2017. The most recent Working Group in November 2018 involved over 100 officials on each side.

In parallel, work has taken place between our governments to ensure continuity of trade with the US, notably the UK-US Mutual Recognition Agreement, the UK-US ‘Open Skies’ Air Services Arrangement, and Wine and Spirits Agreements signed in recent months.

Protecting the UK’s right to regulate is in the public interest and protecting public services, including the NHS, will be of the utmost importance when negotiating future trade agreements. Our position is definitive: the NHS is not, and never will be, for sale to the private sector, whether overseas or domestic. The government will ensure no trade agreements will ever be able to alter these fundamental facts.

The UK’s public services are protected by specific exceptions and reservations in existing EU Free Trade Agreements (FTAs). As we leave the EU, the UK will continue to ensure that rigorous protections are included in all trade agreements to which it is party, whether transitioning existing EU FTAs or resulting from new negotiations.

The government has been consistently clear that it is committed to negotiating an ambitious FTA with the US that maintains our high standards for businesses, workers and consumers.

​We are concerned by the risk of unintended escalation between the United States and Iran. That is why we are speaking to all parties and specifically advising Iran – using our diplomatic relationship – that escalation is not in their interest. We are also concerned by the potential of further tension as a result of the failure of the Joint Comprehensive Plan of Action. We are clear that maintaining this deal is important to our national security interests; the UK Government is working with our European partners to ensure it is upheld as long as Iran continues to meet its nuclear commitments in full.

The UK remains concerned about the current trade tensions between the US and China which could adversely affect global growth.

The UK shares some of the US’s concerns with China’s trade practices and believes they should be addressed through structural opening in China and through multilateral cooperation, including ambitious reform of the WTO. The UK supports ongoing dialogue between the US and China to resolve these issues with an outcome that is WTO-compliant. We continue to raise our concerns with partners.

The UK has consistently supported the European Commission in engaging with the US to stress the importance of de-escalating trade tensions, which are in no one’s interest. We have been clear in our opposition to US tariffs on steel and aluminium and threatened tariffs on autos. These are unjustified and have, and will have, a negative impact on the UK as an EU Member State and after exit under their existing terms.

We will continue to work with the EU and the US to find a constructive permanent solution, including through implementing the EU-US Joint Statement agreed by Presidents Juncker and Trump in July last year.

The Government is preparing for an ambitious programme of trade negotiations and enhanced market access, including potentially opening formal negotiations for a new free trade agreement with the US. We have conducted a 14-week long public consultation on a potential future trade agreement with the US and will respond in due course.

There is substantial complementarity between the UK and US economies, notably on trade in services. We have been clear that any future trade agreements must work for UK producers, businesses, and consumers, and uphold the UK’s high levels of food safety, animal welfare standards, and environmental protection.

The Department for International Trade (DIT) works to raise the profile of the UK’s world leading sports industries, organisations and leagues across the globe. The announcement of Los Angeles as host of the 2028 Olympic and Paralympic Games and the successful ‘United’ bid of the United States, Canada and Mexico to host the 2026 FIFA Football World Cup present opportunities for UK expertise in major sporting events. DIT will actively promote relevant opportunities arising from these events to UK businesses and organisations as they pursue opportunities in the sports economy sector internationally.

The UK has a deep and enduring relationship with the United States which we will continue and deepen after we leave the EU. The UK-US Financial Regulatory Working Group lays the foundation for greater co-operation in the banking sector. We will also continue to work with the US under the Science and Technology Agreement signed in September 2017, to develop programmes that broaden our bilateral relationship and keep us at the forefront of international research and innovation.

HMG is continually monitoring developments in the US economy, which have a substantial influence on the global economy and directly impact on UK-US trade.

In line with the IMF’s forecast, the Office for Budget Responsibility expects US GDP growth of 2.9 and 2.5 per cent in 2018 and 2019 respectively.

The US is the UK’s largest trading partner and the UK’s top export destination. Our trading relationship is worth over £180bn a year including almost £112 billion in UK exports of goods and services to the US in 2018.

New, bilateral, air services arrangements between the UK and US will come into effect once the EU-US Air Transport Agreement ceases to apply to the UK.

The United States is already our largest trading partner outside the European Union. The UK and US have a close relationship in terms of our trade, financial, cultural and investment links. After leaving the EU in March 2019 we will be able to pursue an ambitious Free Trade Agreement with the US.

In July 2017 my Rt Hon. Friend the Secretary of State for International Trade launched the UK-US Trade and Investment Working Group which has since met on five occasions. As well as looking at delivering commercial continuity for UK and US businesses, workers and consumers post-EU exit, this group is laying the groundwork for an ambitious UK-US free Trade Agreement.

Our priority is to ensure there is no disruption to our global trading relationships as we leave the EU. The government will continue to prepare for all eventualities with our trading partners, including the US.

Under the UK’s proposal for its future relationship with the EU, as set out in the Government’s White Paper ‘The future relationship between the United Kingdom and the European Union’, a future UK/US trade deal would be possible and remains a top priority. The UK would have freedom to negotiate in areas such as services, tariffs, and regulatory cooperation and conformity assessment. There is a complementarity between the UK and US economies and there would be substantial gains for both sides.

In 2017 the US accounted for, in terms of tonnage, 7% and 3% respectively of UK steel and aluminium exports in scope of these tariffs, at a value of £360 million and £29 million respectively.

We are working closely with the steel and aluminium industries to assess the potential impact of these measures.

We remain committed to robustly defending and protecting the UK steel and aluminium industries and its employees. The government will continue to press the US for an EU wide exemption from these unjustified tariffs, in order to ensure our steel and aluminium industries are not damaged.

The Government is deeply disappointed at the imposition of tariffs on the EU for the export of steel and aluminium.

It is right to seek to defend our domestic industries from the damaging direct and indirect impacts of these US tariffs. The government has worked closely with the EU as part of our unified response. The response must be measured, proportionate and within the boundaries of the rules-based trading system, of which the UK is a strong advocate.

When we leave the European Union, we will maintain our current high food standards as part of any future trade deals. We will keep our existing UK legislation, and the EU Withdrawal Bill will convert EU law into UK law as it applies at the moment of exit.

Any future trade agreements must work for UK consumers and producers.

The government has set out its receptiveness to exploring interim measures with like-minded countries, such as a tax on revenues, to tax certain digital businesses which generate value from UK users. Any such tax would be designed to compensate for unrecognised user-created value pending wider reform of the international corporate tax system. The effects of any such tax would depend on its scope, rate and detailed design.

Discussions are being held with the US about new, bilateral, air services arrangements that will apply after the current EU-US Air Transport Agreement ceases to apply to the UK. Discussions have been positive and we have made significant progress. Both sides want to conclude these discussions soon.

All parties have a shared interest in ensuring that existing rights will continue under the new bilateral arrangements, allowing airlines on both sides of the Atlantic to continue to operate existing services as well as to develop new ones.

We are seeking the greatest possible barrier-free trade with our European neighbours, alongside the ability to negotiate our own ambitious trade agreements around the world.

The US is already our largest single trading partner, accounting for around 15% of total UK trade, worth around £166bn billion in 2016. We expect the US to remain a key trading partner as we leave the EU and have already established a Trade and Investment Working Group to strengthen our bilateral trade and investment relationship.

Close regulatory alignment with the EU could take many different forms. There may be an impact on our ability to agree ambitious regulatory elements in a future FTA with the US (i.e. to further reduce barriers to trade) should we not be able to diverge.

The Government has assessed that the total volume of UK trade with the world would be between 9% and 24% lower after 15 years if the UK left the EU.

If the UK withdrew from the EU we would no longer benefit from the trade agreement the EU is negotiating with the US. Negotiating a replacement agreement would take years as the US would almost certainly want to conclude its negotiations with the EU first before deciding whether to enter into separate negotiations with the UK.

I remain hopeful that the EU and US will come to an agreement on a replacement for safe harbor. If not, data transfers to the US will need to be based on an alternative method of transfer.

I visited Washington at the beginning of January where I discussed what this Government could do to aid discussions between the Commission and US. Since this visit, I hosted a roundtable together with the Information Commissioner’s Office where we provided business and other interested organisations with an update on the discussions.

The Government continues to urge both sides in these negotiations to reach a swift conclusion. Commissioner Jourova recently said that she believed an agreement was possible and the Committee comprising the data protection authorities of all 28 member states will meet to review the position on 2 February.

In the meantime the Commission issued a communication on 6 November 2015 regarding international transfers. This is based on guidance from the Article 29 Working Party which is the grouping of the European data protection authorities. The Information Commissioner's Office has also issued guidance on the use of alternative methods of data transfer between the EU and US.