The U.S. has a $12 billion trade surplus with the United Kingdom, meaning it already exports more than it imports. Meanwhile, the baseline 10% tariff Trump announced April 2 will remain in effect for most U.K. imports, which could lead to higher prices for consumers.

In exchange, the U.K. will ease trade barriers targeting a set of products, including ethanol, beef and machinery, among other products, Secretary of Commerce Howard Lutnick said. That additional market access amounts to $5 billion worth of trade, the White House said.