The deal is sealed.
President Donald Trump signed an agreement on Monday that reduces certain tariffs on goods imported from the United Kingdom, as both nations continue efforts toward a comprehensive trade deal. The announcement, made during the G7 Summit in Canada alongside British Prime Minister Keir Starmer, confirmed continued tariff and quota arrangements for British car exports and removed tariffs impacting the U.K.’s aerospace sector. However, discussions surrounding steel and aluminum tariffs remain ongoing.
Though key industries like pharmaceuticals were not addressed in this agreement, both leaders praised the development. Trump described the U.S.-UK relationship as “fantastic” and initially misstated the agreement as involving the European Union before clarifying that it was specifically with Britain. Starmer hailed the deal as a significant step forward for both countries.
According to a White House executive order, the United States will introduce a quota system for British steel and aluminum that exempts the imports from a 25% tariff. This exemption is contingent upon the U.K. demonstrating secure supply chains and production oversight. Commerce Secretary Howard Lutnick will be responsible for determining the specific quota limits.
To prevent British exports from being subjected to higher tariffs—potentially as much as 50%—a plan was reached to permit up to 100,000 British-made vehicles annually to enter the U.S. at a reduced 10% tariff. The agreement also grants reciprocal market access for 13,000 metric tons of U.S. beef, provided it meets U.K. food safety standards. The trade terms are scheduled to take effect one week after being published in the Federal Register.
The U.K. government welcomed the deal as a major victory for its auto and aerospace sectors, emphasizing that it was the first country to reach such an arrangement under the Trump administration. While final implementation had been delayed due to negotiations, British Trade Secretary Jonathan Reynolds noted that this initial package was finalized faster than most trade agreements. Discussions are expected to continue on pharmaceutical access and protection against further tariffs under ongoing U.S. trade investigations. When asked whether the U.K. was safeguarded from future tariff hikes, Trump responded that the country was “very well protected,” citing his personal affinity as the reason.
