Overview

• UK Trade Secretary Jonathan Reynolds met US Commerce Secretary Howard Lutnick in London to press for activation of the trade deal announced by President Trump and Prime Minister Starmer last month.
• Officials are prioritising a reduction of car tariffs first, as cutting duties on steel and aluminium involves more complex rules of origin and quota arrangements.
• Both governments must finalise their legal frameworks, with the UK passing regulatory amendments through Parliament and the US creating mechanisms to enforce steel, aluminium and vehicle quotas.
• The UK remains exempt from President Trump’s 50% increase on steel and aluminium tariffs until July 9, provided it complies with the terms of the preliminary agreement.
• Key unresolved issues include the method for allocating the 100,000-car annual quota and concerns that origin requirements could exclude Tata Steel from the deal.