On June 16, 2025, during the Group of 7 summit in Canada, U.S. President Donald Trump and U.K. Prime Minister Keir Starmer unveiled a trade agreement aimed at reducing tariffs on British exports, specifically cars, steel, and aluminum. In his executive order, Trump slashed tariffs on British automobiles from 25% to 10%, creating a smoother pathway for British steel and aluminum to enter the U.S. market tariff-free. This development follows a preliminary agreement made the previous month and has been hailed by both leaders as a victory for their respective nations.
Trump and Starmer Finalize Trade Agreement, Lowering Tariffs on British Goods
Trump and Starmer Finalize Trade Agreement, Lowering Tariffs on British Goods
The U.S. President and U.K. Prime Minister announce a trade deal focused on cars, steel, and aerospace, marking a significant step in international commerce.
Trump commended Starmer's negotiation capabilities, emphasizing the speed at which they reached the agreement compared to previous attempts that had stretched on for years. "He’s done a very, very good job. You know, he’s done what other people — they’ve been talking about this deal for six years, and he’s done what they haven’t been able to do,” Trump stated. Starmer reciprocated the praise, describing the agreement as “really important” and a significant achievement for the U.K.
Despite the announcement's optimism, details remain incomplete; the U.S. Commerce Department is tasked with setting a quota for the allowable volume of British steel imports under the tariff-free agreement. Trump recently increased tariffs on foreign steel products to 50% earlier this month, and questions lingered regarding potential further reductions for British steel.
Overall, the agreement is positioned to enhance trade relations between the U.S. and the U.K., potentially benefiting various sectors from manufacturing to aerospace, though specifics about implementation and long-term impacts remain to be seen. As negotiations continue, stakeholders on both sides will be watching closely to see how these changes unfold in the global market.
Despite the announcement's optimism, details remain incomplete; the U.S. Commerce Department is tasked with setting a quota for the allowable volume of British steel imports under the tariff-free agreement. Trump recently increased tariffs on foreign steel products to 50% earlier this month, and questions lingered regarding potential further reductions for British steel.
Overall, the agreement is positioned to enhance trade relations between the U.S. and the U.K., potentially benefiting various sectors from manufacturing to aerospace, though specifics about implementation and long-term impacts remain to be seen. As negotiations continue, stakeholders on both sides will be watching closely to see how these changes unfold in the global market.
