U.S. and U.K. Sign Trade Deal Slashing Tariffs on Autos, Aerospace — Steel Talks Ongoing
At the Group of Seven (G7) summit in the Canadian Rockies, U.S. President Donald Trump and U.K. Prime Minister Keir Starmer announced the signing of a new bilateral trade agreement that significantly lowers tariffs on British cars and aerospace products — though steel remains unresolved.
The deal, hailed by both leaders as a "win-win," cuts U.S. import duties on British-made autos to 10% from the current 27.5% — up to a quota of 100,000 vehicles per year — and removes tariffs entirely on U.K. aerospace goods. Trump called the agreement “a fair deal for both” that will “produce a lot of jobs,” while Starmer said it marked “a very good day” for both economies.
The agreement is an expansion of a framework announced in May. It follows mounting pressure on both sides to avoid a trade conflict amid Trump’s broader tariff threats. However, the deal does not yet finalize terms on steel, an issue seen as critical for the U.K.'s struggling steel industry. British output has plunged 80% since the 1960s, primarily due to cheaper global competition.
While the original goal was zero tariffs on U.K. steel, talks are still ongoing. The U.S. Commerce Department is expected to finalize quotas on steel and aluminum imports exempt from broader Trump-era tariffs. For now, the U.K. remains spared from a recent increase to 50% tariffs, retaining a 25% rate.
British Business and Trade Secretary Jonathan Reynolds said the agreement protects key sectors, while industry groups, including the Society of Motor Manufacturers and Traders, welcomed the deal as “great news” for U.K. carmakers.
The agreement also allows limited mutual beef exports — 13,000 metric tons per year — though Britain’s ban on hormone-treated beef remains in effect.
Talks will continue on unresolved areas, including pharmaceuticals and broader access to both markets. The White House emphasized that the agreement reinforces shared goals of secure supply chains, particularly in the face of growing concerns over Chinese trade dominance.
By RSS/AP News
