Fresh off the G7 Summit in Canada, President Donald Trump and UK Prime Minister Keir Starmer unveiled a limited US–UK trade agreement on Monday, offering long-sought tariff relief for British aerospace and auto manufacturers.
The agreement eliminates US tariffs on UK aircraft parts and planes, and grants UK automakers an annual quota of 100,000 cars that can enter the US at a 10% tariff, instead of the standard 25% rate faced by other countries.
“We signed it and it’s done,” Trump declared, before briefly mistaking it as a deal with the EU.
Steel relief remains uncertain
One major piece of the puzzle remains unresolved: steel and aluminum imports.
The US had threatened to slap up to 50% tariffs on UK steel as part of its sweeping Section 232 tariffs imposed earlier this month. That risk has been delayed — for now. The White House says Britain could avoid those penalties if it meets conditions tied to supply chain security and domestic production standards.
A final decision will rest with Commerce Secretary Howard Lutnick, and without a firm deal in place, new tariffs could still kick in as early as July 9.
UK calls it a ‘real win’
UK Trade Secretary Jonathan Reynolds celebrated the agreement as a “huge win” for aerospace and auto sectors, highlighting the speed of the deal’s implementation. “We’re delivering on the first set of agreements in a matter of weeks,” he said.
The deal also sets reciprocal beef quotas of 13,000 metric tons and eliminates tariffs on US ethanol, with the UK maintaining its own strict food safety standards.
Talks are still underway on preferential access for UK pharmaceuticals, and both sides confirmed that the broader trade relationship remains a work in progress.
Trump: “Because I like them”
Asked whether the UK is shielded from future tariff threats, Trump replied with trademark ambiguity:
“The UK is very well protected. You know why? Because I like them. That’s their ultimate protection.”
While not a full-blown free trade agreement, Britain is now the first country to secure targeted tariff reductions from the Trump administration — a symbolic win for a government still navigating post-Brexit trade dynamics.
The US–UK trade breakthrough offers immediate relief for aerospace and autos — but the steel standoff looms. With Trump’s tariffs in play and quota conditions unclear, the UK’s industrial sector may not be out of the woods yet.
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