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U.S. President Donald Trump and UK Prime Minister Keir Starmer signed a new tariff agreement on the sidelines of the G7 Summit in Canada, aiming to deepen trade ties between the two nations. The deal reduces tariffs on key UK exports, including automobiles and aerospace components, while leaving steel and aluminum tariffs partially unresolved.
Under the agreement, the U.S. will lower tariffs on UK-made vehicles, allowing up to 100,000 cars annually to enter the U.S. at a 10% tariff—less than half the rate imposed on other countries. Tariffs on UK aerospace products, including parts and planes, will be eliminated entirely. Trump mistakenly referred to the agreement as an EU deal before clarifying it was with Britain.
The UK avoided steep tariffs of up to 50% on steel and aluminum, which could have taken effect by July 9. A quota-based exemption will be applied to these sectors, pending UK assurances on supply chain security. Commerce Secretary Howard Lutnick will determine quota limits.
The agreement also grants reciprocal access for 13,000 metric tons of beef, with UK food safety standards remaining in place. In return, Britain will reduce tariffs on U.S. beef and ethanol.
UK Trade Secretary Jonathan Reynolds hailed the deal as a major win for the UK's aerospace and automotive industries, noting Britain is the only nation to have secured such an arrangement with Washington. Both sides continue to negotiate preferential terms for pharmaceuticals and protections against future Section 232 tariffs.
Trump summed up the agreement by saying, “The UK is very well protected. You know why? Because I like them.” The agreement will take effect seven days after publication in the Federal Register.
