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President Donald Trump and British Prime Minister Keir Starmer announced Monday the signing of a trade agreement aimed at reducing tariffs on U.K. auto and aerospace imports to the United States, though negotiations on steel remain unresolved.
Speaking at the Group of Seven summit in Canada, Trump displayed the signed deal to reporters, calling it “a fair deal for both” countries that will “produce a lot of jobs, a lot of income.”
“We just signed it,” Trump said. “And it’s done.”
Starmer also celebrated the agreement, calling it “a very good day for both our countries, a real sign of strength.”
The pact finalizes a framework the two leaders announced in May, which aimed to reduce U.S. tariffs on British cars, aluminum and steel, while granting more access to the U.K. market for U.S. exports like beef and ethanol.
Monday’s deal, however, applies only to British cars and aerospace products. The British government said the agreement eliminates a proposed 10 percent tariff on U.K. aerospace goods, including those made by companies like Rolls-Royce. It also lowers the tariff on British vehicles from 27.5 percent to 10 percent for up to 100,000 cars annually, effective at the end of the month.
Britain’s steel industry, which has seen output decline by 80 percent since the late 1960s, is considered highly vulnerable due to rising costs and competition from Chinese producers.
Earlier this month, Trump raised global metal tariffs to 50 percent, sparking concerns among British businesses. He later clarified the U.K. would remain at the 25 percent level. The White House said Commerce Secretary Howard Lutnick will establish a quota for U.K. steel and aluminum imports to enter the U.S. tariff-free.
The British government maintained that the end goal remains “0% tariffs on core steel products as agreed.” Trump’s executive order authorizing the agreement referenced U.S. supply chain security concerns and stated that the U.K. had committed to supporting American requirements for steel and aluminum exports.
The agreement also includes a provision allowing American farmers to export 13,000 metric tons of beef to the U.K. each year, and vice versa. However, Britain’s ban on hormone-treated beef remains in effect.
