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US and UK Seal Trade Deal Cutting Car and Aerospace Tariffs

The deal coincides with continued talks to lower steel tariffs; it also comes as the AUKUS submarine programme proceeds despite a US-led review.

U.S. President Donald Trump and British Prime Minister Keir Starmer hold a signed Trade Agreement during a meeting, at the G7 summit, in Kananaskis, Alberta, Canada, June 16, 2025. REUTERS/Suzanne Plunkett/Pool/File Photo
A worker prepares a sign ahead of the G7 summit at a satellite location in Banff, Alberta, Canada, June 14, 2025. REUTERS/Amber Bracken/ File Photo
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Overview

  • The agreement signed at the G7 summit eliminates US tariffs on British aerospace products and reduces car levies from 27.5% to 10%.
  • Steel exports remain subject to a 25% tariff as both governments pursue further negotiations toward zero duties on core products.
  • London will admit up to 13,000 metric tons of US beef and ethanol annually under reciprocal quotas that must meet UK food safety standards.
  • President Trump praised Prime Minister Starmer’s success in finalising the pact and said the UK is shielded from future tariffs “because I like them.”
  • The AUKUS nuclear submarine programme between the UK, US and Australia continues to advance despite Washington’s ongoing review of the agreement.