As Trump visits the UK for an unprecedented second State Visit, it’s time for “maximum pressure” to secure trade and technology alliance

16th September 2025

In a report yesterday the Commons Business and Trade Committee says President Trump’s State Visit is the moment to maximise pressure on the United States to agree final terms of a full Economic Prosperity Deal that will end sectoral uncertainty, secure critical supply chains and drive investment into the UK.

UK must leverage its partnership with the US to ensure Western technological supremacy over China
Government must drive forward negotiations to de-risk the threat of future tariffs, match preferential EU terms, lock in agreed tariff reductions and expand co-operation.

Final deal must be open to full democratic scrutiny in Parliament.

he United States is the UK’s largest single trading partner, representing 18% of total UK trade, worth £315 billion in 2024. Of that, UK exports to the US were £196 billion, about 2% of national income. The two countries have fully £1.2 trillion invested in each other’s economies.

President Trump’s second term has been characterised by the expansion of US trade policy to advance strategic and security objectives. Against this challenging backdrop, on 8 May 2025 the UK became the first country to reach an agreement since Trump’s “liberation day” tariffs. This is an important win, but the UK is still trading with the US on worse terms than before, and in some cases on worse terms than the EU’s later deal.

The EPD is a non-binding political framework, not a free trade agreement. Under it, UK exporters have reduced some of the tariff exposure:

Automotive reduced from 25% to 10% - but subject to a 100,000-vehicle quota, with uncertainty over the allocation of quota among UK auto manufacturers
Aerospace exports returned from 10% back to 0%.
To achieve these reductions, the UK removed 20% agricultural tariff in beef and ethanol (also both subject to quotas)
But some commitments remain under discussion. The Committee says the Government must maximise pressure on the US to minimise tariffs for UK steel and aluminium producers, and work to ensure that any final agreement reflects the realities of UK supply chains and the sector’s transition to low-carbon production. The tariff conditions on pharmaceuticals are also still uncertain amid tense negotiations over trans-Atlantic drug pricing.

The UK should treat the EPD not just as a trade agreement, but as part of the UK’s wider foreign, economic, and industrial strategy – integrating economic engagement into the broader geopolitical dialogue to minimise the risks of ad hoc, zero-sum bargaining with a far larger partner.

In particular, the UK must leverage the US partnership to ensure Western leadership over China in the race for technological supremacy—particularly in AI and defence tech, de-risked supply chains, and greater security for supplies of critical minerals.

The Committee urges Government to use its new Industrial Strategy Council to convene business, industry, and research partners to shape a ‘mission-led’ vision, for deeper UK–US trade cooperation and innovation leadership. The Trade Remedy Authority needs reform to ensure it moves at the same speed as the EU on defences against products being diverted into the UK market.

Whenever the Government makes substantive trade commitments, in whatever form, the Committee demands they are subject to full parliamentary scrutiny.

Comment from the Chair

Rt Hon Liam Byrne MP, Chair of the Committee, yesterday said, "President Trump’s State Visit is no mere pageant. It is a test of whether Britain and America build a safer, richer future - or remain trapped in tariff fights that serve neither nation well.

Sir Keir Starmer deserves credit for securing the Economic Prosperity Deal. But we can’t escape the truth that Britain now trades with its biggest partner on terms than are worse than the past, the EU has in places secured a better edge, and key sectors of our economy still face the peril of new tariffs. That means jobs hang in the balance and investment waits on certainty.

“That is why the State Visit must deliver more than ceremony. There is a great prize for us to seize.

Britain’s science, AI and the City of London, joined with America’s tech giants and venture markets, could set the standards of this century and help secure Western leadership over China for decades to come. But that means we have got to turn paper promises into a binding bargain that ends the tariff tempest that is battering British exporters and investors.”

The Committee was disappointed that the Government was unable to provide support to the bioethanol industry to prevent the closure of the Vivergo plant – already making a substantial impact on domestic production capacity.

Read the full report HERE
Pdf 68 Pages.