President Donald Trump and U.K. Prime Minister Keir Starmer have announced a new trade agreement aimed at reducing tariffs between the United States and the United Kingdom. This agreement was unveiled during the Group of Seven Summit in Canada, where both leaders expressed optimism about the deal’s potential benefits.
Trump described the agreement as “fair to both sides,” emphasizing that it would create jobs and boost income in both countries. He highlighted the strong relationship between the U.S. and the U.K., noting the enthusiasm surrounding the deal. Starmer echoed this sentiment, calling it a “really important agreement” that signifies strength for both nations.
The key feature of the trade deal is a 10% tariff on the first 100,000 vehicles imported from Britain to the U.S. Additionally, it will eliminate several tariffs on aerospace products, which is expected to further enhance trade in that sector. However, the agreement does not finalize terms regarding steel and aluminum trade. Instead, it outlines that the U.K. will work to meet U.S. standards for supply chain security in these areas.
The agreement also includes a commitment from the U.K. to align with American requirements concerning the ownership and security of facilities that produce steel and aluminum for export to the U.S. This step is crucial for ensuring that products meet U.S. safety and security standards.
This trade deal follows earlier discussions in May, where Trump and Starmer first indicated progress on agreements related to vehicles, steel, and aluminum. At that time, Trump expressed pride in the relationship with the U.K., calling it a historic alliance.
Overall, this trade agreement is seen as a significant step in strengthening economic ties between the United States and the United Kingdom, promising mutual benefits for both nations in the coming years.