UK-US Trade Pact Signed, Metal Tariffs Still Await Final Resolution
US President Donald Trump signed a new UK-US Trade Pact on Monday, a significant first towards closer economic ties. The agreement leaves important metal tariffs outstanding but reduces some tariffs on British imports. Announced the agreement at the G7 Summit in Canada, Trump and UK Prime Minister Keir Starmer
Progress on Autos and Aerospace, Metals Remain Unresolved
The agreement removes tariffs on aerospace goods, including aircraft parts and planes, and confirms tariff limits on British cars. On steel and aluminum tariffs, though, neither side was able to come to an ultimate consensus. Months of hard negotiations have gone through these industries. There are more meetings scheduled to fix these
Trump, Starmer Highlight Strong Bilateral Relations
Trump hailed Washington’s and London’s cooperation as he signed the agreement. He first misidentified it as an EU agreement but corrected himself fast. Declared Trump, “We signed it and it’s done.” Starmer said, “a very good day for both of our countries, a real sign of strength.”
First nation to land a reduced tariff agreement with Trump’s government is the UK. US taxes on British cars, aluminium, and steel will drop under the pact. Britain will reduce tariffs on US beef and ethanol imports in return.
Britain avoided imposing on other nations earlier this month steep taxes of up to 50% on steel and aluminum. However, the US will let imports of British steel and aluminium tariff-free only if Britain shows it has stable production and safe supply chains. A White House directive dictates that Commerce Secretary Howard Lutnick will establish the precise quotas.
Under the US Section 232 national security law, Britain would have faced higher tariffs beginning July 9 without this agreement. Though future threats still exist, the quota deal provides some respite.
With a 10% tariff, far less than the 25% standard rate for others, the agreement lets British manufacturers export 100,000 cars yearly to the US. Complete tariff elimination immediately helps the aerospace industry.
Calling the agreement a “huge win,” UK Trade Secretary Jonathan Reynolds Although negotiations of this kind sometimes take months, he pointed out that this agreement will be operative in a few weeks.
The two countries also agreed on reciprocal access for 13,000 metric tons of beef, while maintaining UK food safety standards. Negotiations continue on pharmaceutical trade and to prevent future tariffs under ongoing Section 232 reviews.
When asked if the UK was fully protected from future tariffs, Trump smiled and said, “The UK is very well protected. You know why? Because I like them. That’s their ultimate protection.”
