The United States and the United Kingdom have announced a new trade agreement, marking the first major deal since President Donald Trump imposed sweeping tariffs earlier this year. While both governments have hailed the accord as a breakthrough, the actual impact on transatlantic trade is limited, with many core tariffs remaining in place and several details still to be finalized.

The U.S. will eliminate the 25% tariff on British steel and aluminum imports, which had been in place since March. However, the broader impact is muted since the U.S. will retain a 10% baseline tariff on most goods, and it’s unclear if all steel-derived products will benefit.

U.S. tariffs on British car imports will drop from 27.5% to 10%, but this reduction only applies to a quota of 100,000 vehicles, roughly matching last year’s exports. Customers in the United States purchase UK-made models like Jaguar Land Rover and Rolls-Royce.

The deal opens the UK market to more U.S. agricultural exports, including beef and ethanol. British farmers will be able to export up to 13,000 metric tonnes of beef to the U.S. tariff-free, but UK food safety standards-such as the ban on hormone-treated beef-remain intact.

While both countries are major exporters of pharmaceuticals to each other, the agreement’s provisions for this sector remain vague. Most finished pharmaceuticals already face minimal or no tariffs, and the deal does not introduce new restrictions.

Despite the fanfare, no final, legally binding document has been signed yet. Both President Trump and Prime Minister Keir Starmer have described the agreement as “comprehensive,” but officials from both sides acknowledge that many specifics are still being negotiated. The current announcement is best described as a framework or preliminary agreement, with the expectation that further details will be concluded in the coming weeks.

Both governments are presenting the deal as a template for future agreements with other countries. However, analysts caution that the headline figures, such as $5 billion in new export opportunities, are likely spread over several years and may include trade that would have occurred anyway. The deal is more about restoring the status quo after a period of tariff escalation than about forging new ground in free trade.