UK and India strike a trade deal amid U.S.-led tariff tensions

The United Kingdom and India struck a bilateral trade agreement Tuesday, lowering tariffs on key exports such as U.K. whisky and cars, amid a global trade war initiated by the United States.

The deal will see India gradually lower taxes on imports from the U.K., with the vast majority of goods traded becoming “fully tariff-free within a decade,” according to the British government.

Exports from the U.K., such as whisky and gin, will see tariffs halved from 150% to 75%, before reducing to 40% within a decade under the agreement. Meanwhile, many automotive tariffs will be cut sharply from over 100% to 10%, the government added.

The trade agreement between India and the U.K. comes at a time of rising trade tensions globally. U.S. President Donald Trump has raised tariffs on imports worldwide, straining relations with allies and adversaries.

The U.K. government said the agreement is expected to increase bilateral trade by £25.5 billion ($34 billion). Trade between the two nations stood at £42.6 billion in 2024, up 8.3% from the previous year.