In a significant development during the Group of 7 summit in Canada, U.S. President Donald Trump and British Prime Minister Keir Starmer officially announced the finalization of their trade agreement on Monday. This deal aims to reduce tariffs on British automobiles, steel, aluminum, and aerospace components, following their earlier discussions last month.
Under this new agreement, Trump issued an executive order that reduces tariffs on British cars from 25% to 10%, allowing for greater access to the American market. Moreover, a specified quota of British steel and aluminum will enter the U.S. tariff-free, marking a substantial shift in trade policy. The agreement includes lowered tariffs on certain airplane parts as well, which officials from Britain claim will provide crucial support to the UK aerospace industry.
Trump lauded Starmer’s negotiating prowess, emphasizing that while others have attempted to reach this deal for years, Starmer succeeded where they failed, stating, “He’s done what they haven’t been able to do.” Starmer echoed the sentiment, calling the day a landmark achievement.
Despite the celebratory announcement, the White House clarified that the U.S. Commerce Department is responsible for establishing the exact quota for British steel imports. This comes after Trump had previously increased tariffs on all foreign steel products to 50% earlier this month. When pressed on whether tariffs on British steel would be completely eliminated, Trump indicated that further updates would be provided soon.
Under this new agreement, Trump issued an executive order that reduces tariffs on British cars from 25% to 10%, allowing for greater access to the American market. Moreover, a specified quota of British steel and aluminum will enter the U.S. tariff-free, marking a substantial shift in trade policy. The agreement includes lowered tariffs on certain airplane parts as well, which officials from Britain claim will provide crucial support to the UK aerospace industry.
Trump lauded Starmer’s negotiating prowess, emphasizing that while others have attempted to reach this deal for years, Starmer succeeded where they failed, stating, “He’s done what they haven’t been able to do.” Starmer echoed the sentiment, calling the day a landmark achievement.
Despite the celebratory announcement, the White House clarified that the U.S. Commerce Department is responsible for establishing the exact quota for British steel imports. This comes after Trump had previously increased tariffs on all foreign steel products to 50% earlier this month. When pressed on whether tariffs on British steel would be completely eliminated, Trump indicated that further updates would be provided soon.
