Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning
I welcome the announcement made by the UK government on 8 May 2025 that it has concluded negotiations on the general terms for a UK-US Economic Prosperity Deal. The deal contains a commitment to remove tariffs on steel and reduce tariffs on automotive products, both of which will provide a welcome boost for our trade of these goods.
I understand that the deal is in response to the series of ‘reciprocal’ and other tariffs that were announced by the US in the last few months. Such tariffs have the potential to significantly impact our businesses, and these concerns were reinforced to me by my Tariff and Intelligence Response Group.
The United States represents an important market for Wales, and we have a strong trading relationship with around 1,066 Welsh businesses exporting goods to the US and 1,220 businesses importing goods from the US in 2024[1]. Goods trade between the United States and Wales was valued at £6.4bn in 2024. This makes the US our 2nd largest export market (accounting for around 13.5% of goods exports) and largest import market (accounting for around 20.3% of goods imports). Latest services trade data for 2022 estimate the value of services trade with the US to be around £3.2bn.
The Welsh Government recognises the benefits of international trade, and this announcement follows the welcome securing of the UK-India Free Trade Agreement and lays the foundations for future negotiations with the US. Combined, these two agreements can have the potential to unlock global trading opportunities for Welsh businesses.
As we look ahead to the Investment Summit in December, it is important to show that Wales is open for business. Trade deals with the US and India are important to help us communicate that message.
We understand that the final agreement is still being negotiated, and we will continue to work with the UK government as negotiations progress to ensure that Welsh interests are protected. We must ensure that the high animal welfare and food standards we have here in Wales are fundamentally protected and that any goods and products that are subject to reciprocal access meet our own high standards. My officials will rapidly review the details of the agreement once available.
[1] This represents around 33.4% of 3,188 Welsh businesses that exported in 2024 and 10.4% of the 11,693 Welsh businesses that imported.