UK US Trade Deal Backs Square Mile Strength – But Not Everyone’s On Board

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May 11, 2025
4 min read

UK US Trade Deal Backs Square Mile Strength – But Not Everyone’s On Board

The latest UK US trade deal is being welcomed in the Square Mile as a vote of confidence in London’s place on the global stage. With tariffs reduced across a number of key sectors, business leaders in the City see it as a move that could help reinforce the capital’s status as a hub for international investment and trade.

Chris Hayward, Policy Chairman of the City of London Corporation, summed up the mood in the City, saying:

“This deal to reduce tariffs reinforces the UK’s position as the best place for business investment, and follows hot on the heels of the landmark UK-India agreement. The upcoming UK-EU Summit presents further opportunities that can be positive for UK economic growth. Like many, we will be closely examining the details, but this deal sends the right signals worldwide and cements the already solid foundations of the UK-US economic relationship.”

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The agreement includes cuts to tariffs on British car exports, steel and aluminium, as well as improved access to the US market for UK aerospace and pharmaceutical products. From a City perspective, it fits with the Corporation’s long-held support for open, rules-based international trade – especially as London continues to adjust to its post-Brexit economic role.

However, outside the Square Mile, the response has been more mixed. UK farmers have voiced concerns about increased access to the UK market for American agricultural goods. While ministers have insisted that existing food standards will be upheld, many in the farming sector worry about how domestic producers will compete if cheaper imports increase.

In the creative and digital sectors, some concerns remain unresolved. Protections for UK-based content and services have not been fully outlined, and there’s cautious interest in how cultural industries, particularly smaller businesses, will be affected.

Even so, the overall message from the City is one of optimism. Hayward added:

“The City of London Corporation has always championed open, fair, rules-based trade. This agreement is yet another reason why firms and individuals should consider the UK as a safe harbour for investment.”

As ever, the long-term value of the UK US trade deal will depend on how it’s implemented and whether the benefits reach beyond the financial centre. London’s broader economy, including sectors like technology, law, and media, will be watching to see how it plays out.

The City of London Corporation continues to outline its vision for culture, community and commerce on its official site, where current initiatives and strategic documents are available.

For updates on the UK US trade deal and its role in the future of the City of London, visit EyeOnLondon City. We’d love to hear your views in the comments.