The US agreed to ease tariffs on UK steel and aluminum shipments, which had strained relations between the allies.
The European Union and Japan have deals over the controversial taxes imposed by former President Donald Trump in the name of national security.
Extra import taxes the UK had put on US products will be suspended.
The decision was welcomed by business groups.
The US will replace the 25% tariffs on steel with a quota system, which will ensure duty-free treatment to metals shipments up to a certain level, according to the US. 1 June is when the deal will take effect.
The deal has removed a "very frustrating irritant" and is good news for the steel and aluminum sectors, which support the jobs of over 80,000 people across the UK, said the International Trade Secretary.
She said that it means our manufacturers can now enjoy a high level of tariffs-free access to the US market.
Hopefully we can move forward and focus on our thriving trading relationship with the US.
US officials said the suspension of the UK tariffs affected $500m in annual trade.
The historical deal announced today delivers on President Biden's vision to repair relationships with our allies while also helping to ensure the long-term viability of our steel and aluminum industries.
Ms Tai, the top US trade negotiator, refused to be drawn on when or if discussions for a formal free trade agreement might start.
Bown said that the Biden administration prioritised domestic goals over trade.
He said there is no evidence of that happening yet as the US seeks stronger relations with allies.
He said that the US administration has not made any signs that they want to do trade agreements with anyone.
Donald Trump used tariffs as bargaining chips in diplomacy, but the Biden administration has a low prioritisation of trade matters.
He set off a storm of criticism in the US and abroad when he announced the 25% tax on foreign steel shipments and 15% tax on foreign aluminum, citing a need to preserve America's manufacturing base and rejecting concerns that tariffs raise prices.
After allies, including the UK, hit US products such as Harley-Davidson motorcycles in retaliation, Mr Trump backed off the duties for certain countries.
The European Union and Japan had similar deals with the US President.
The approach has won praise in the US, including from groups like the United Steel Workers who responded to the concerns of allies while still providing protection for US manufacturers.
Maintaining support from the workers at the steel plants is important to Mr Biden.
The union praised the new deal on Tuesday, which it said would help safeguard against unfairly subsidized steel production, such as mandatory annual audits of British Steel, which has a Chinese parent company.
UK Steel said that the deal would be felt by steel companies and their employees right across the UK.
Phil Levy, economist for Flexport, said that consumers are unlikely to see benefits from the quota.
He said that replacing tariffs with a system of quotas doesn't get you the benefits of free trade.
The US and UK traded more than $260 billion worth of goods last year, of which the majority were exports from the US such as metals, aircraft parts, oil and gas.
The UK market represents less than 5% of US exports.
The US imports too little British steel for a deal to have a significant impact on prices. The impact on prices is likely to be small for UK consumers of American products.
He said that it can hurt the consumer, so it will make them better off, but by how much.
With America buying 1 in every 6 British exports, the cooling of tensions over steel has raised hopes of a renewed trade relationship.
Levi's jeans, Harley Davidson motorbikes, steel bars and Bourbon whiskey became unlikely weapons in a painful battle that has waged since 2018, with their producers and consumers paying a hefty price. If it is due, this ceasefire will be welcomed by them.
American jobs were protected at the center of the dispute. Even if the man in the White House has changed, the theme of free-trade talks will continue to loom large.
The Biden administration struck a deal with the EU over steel. There are rumors that the UK was made to wait because of unease over the way Boris Johnson's government has handled post-divorce trading in Ireland.
The UK is keen to demonstrate its agility by notching up more trade agreements, but the US will be keen to continue showing it.
All Rights Reserved © 2024
