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UK-US Trade Deal Finalized, Aerospace Tariffs Dropped and Car Levies Slashed

The pact keeps steel and aluminum duties at 25% pending quota-based reductions; grants US farmers market access for beef and ethanol.

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
Japan's Prime Minister Shigeru Ishiba and his wife Yoshiko Ishiba arrive at the G7 summit in Kananaskis, Alberta, Canada,  June 16, 2025.  REUTERS/Kevin Lamarque
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Overview

  • The United States will eliminate all tariffs on British aerospace exports under the new agreement.
  • Car tariffs on UK-made vehicles will fall from 25% to 10% for up to 100,000 units annually.
  • Steel and aluminum exports will continue to face 25% duties, with both governments pledging to negotiate quota-based cuts toward zero.
  • The UK has agreed to admit 13,000 metric tons of US beef and to lift a 19% tariff on 1.4 billion liters of imported US ethanol.
  • Prime Minister Keir Starmer confirmed the AUKUS nuclear submarine partnership with the US and Australia remains on track despite a US review.