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“We’re not going to have tariffs on the U.K.—because I like them,” U.S. President Donald Trump said Monday after signing a new trade agreement with U.K. Prime Minister Keir Starmer at the G7 summit in Canada.
The two leaders unveiled a bilateral trade deal that removes or reduces tariffs on major UK exports, including aerospace and automobiles. Both sides say the agreement has already been implemented and is positioned as a step forward in transatlantic trade cooperation.
According to the U.K.’s Department for Business and Trade, all tariffs on U.K. aerospace exports to the United States will be removed. The deal also lowers tariffs on British-made vehicles to 10%, down from 25%, providing notable relief for the U.K. automotive sector.
Prime Minister Starmer called the agreement “really important” and a “seismic moment” for both countries, thanking Trump during their bilateral meeting for what he described as a landmark outcome.
President Trump praised the deal as “fair” and said it would lead to “a lot of jobs, a lot of income.” He emphasized his personal support for the U.K. and suggested that more agreements were in the pipeline.
The agreement does not extend to all sectors. U.K. steel exports will remain subject to a 25% tariff, though this is half the US’s global rate of 50% on steel and aluminum. Both governments have committed to ongoing discussions to reach zero tariffs on core steel products.
The deal is expected to strengthen U.K.-U.S. trade ties while easing pressure on key British industries, particularly in the manufacturing and export sectors.
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