Kananaskis (TDI): During the G7 Summit in Canada, President Donald Trump signed an executive order to implement the provisions of the long-delayed US-UK tariff agreement, which lowers car import tariffs from the United Kingdom considerably.
According to this new agreement, as many as 100,000 vehicles manufactured in the UK can now be imported to the United States under a tariff of 10%, down from the earlier tariff of 25%, thereby offering relief to British car makers who are suffering due to latest trade restrictions.
UK’s Prime Minister Keir Starmer, speaking alongside President Trump at the G7 venue in Alberta, called the agreement “a very important day” for both nations, underlining it as a “sign of strength” between two longstanding allies. “This deal implements car tariffs and aerospace,” he stated.
With @POTUS today as he signs the executive order that will protect UK business, jobs, and workers.
My government is delivering for Britain. pic.twitter.com/wa6UndzYuv
— Keir Starmer (@Keir_Starmer) June 16, 2025
First revealed in May, the US-UK tariff deal will ease the negative effect of comprehensive US trade measures that had already imposed tariffs on foreign-provided goods imported into the country. The deal includes the removal of tariffs on some aerospace products, but it does not remove duties on critical UK steel exports, which remains one of the primary matters of concern for British business leaders.
The order also includes the UK’s commitment to revise quotas for US agricultural imports. Under the new terms, the tariff on US beef exports to the UK, previously set at 20% within a 1,000 metric ton quota, will be removed, with the quota expanded to 13,000 metric tons. The UK government has assured that all US imports will still be required to meet strict domestic food safety standards.
Business and Trade Secretary Jonathan Reynolds emphasized that it “lowers the burden on UK businesses” and is “the result of work happening at pace between both governments.”
Though not a comprehensive free trade agreement, the US-UK tariff deal marks the first formal pact announced by the White House since its new protectionist policies took effect earlier this year. Trade experts believe the agreement could lay the groundwork for deeper economic ties, especially if future negotiations tackle unresolved issues like steel and digital services.
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