Jill Lawless, Associated Press
KANANUSCAS, Alberta (AP) — US President Donald Trump and British Prime Minister Kiel Starmer said they signed a trade agreement on Monday to cut tariffs on imports in the UK’s automobile and aerospace industry, but they are still debating how to handle steel production.
The pair spoke with reporters in a group at the Seven Summit in the Canada Rockies. However, the development wasn’t smooth as Trump dropped his papers and said that his administration had reached an agreement with the European Union when he initially meant Britain.
Nevertheless, the president argued that the agreement was “a fair deal for both” and “generates a lot of work, a lot of income.”
“We just signed it,” Trump said, “and it’s over.”
He said that priority means “a very good day for our country, a real sign of strength.”
It is important to reach an agreement as Trump threatened much of the world with sudden import duties that made the market unstable and increased the possibility of a global trade war.
He has since retreated many of the proposed taxation, but has continued to suggest that administrative authorities are fiercely negotiating new trade agreements with dozens of countries, even if few have actually made it into reality.
“The UK is very well protected,” Trump said from tariffs. “Why do you know? Because I like them.”
The signing of the contract at the G7 follows Trump and the May starry sky announcement, which has reached a trade agreement framework that significantly reduces import taxes on UK cars, iron and aluminum to increase access to the UK market for US products, including beef and ethanol.
However, Monday’s contract covers only UK automobiles and aerospace materials, providing more work to steel.
The UK government said the new contract would remove US tariffs on UK aerospace products and exempt the UK from the 10% collection that the Trump White House attempted to impose on all other countries.
Additionally, the UK’s tax on automobiles is set at 10% from the end of the month, resulting in a quota of 100,000 vehicles per year, starting from the current 27.5%.
UK Secretary of Business and Commerce Jonathan Reynolds said the deal “protects work and livelihoods in some of our most important areas.” Mike Haws, CEO of the UK Auto Manufacturers and Traders Association, said it was “great news for the UK auto industry.”
However, there was no final agreement to cut UK taxes on steel to zero, as originally anticipated. British steel output has declined 80% since the late 1960s due to the rapid growth of high costs and inexpensive Chinese production.
The Monday contract embodies the terms of the framework transaction announced in May. That framework didn’t come into effect anytime soon, but British companies left uncertain about whether the UK could be exposed to a surprising hike from Trump.
British businesses and the UK government were blinded earlier this month when Trump doubled metal tariffs in countries around the world to 50%. He later revealed that the UK level remains at 25%.
After the two leaders spoke, the White House issued a statement trying to clarify the issue, saying that on steel and aluminum, Commerce Secretary Howard Lutnick “determines “the allocation of products that are not covered” to previous tariffs imposed by the Trump administration.”
The UK government said Monday that the plan is about “0% tariffs on core steel products within the agreement.”
Trump’s executive order allowing transactions included several references to supply chain security, reflecting US administration concerns about China. The UK is “working to meet American requirements for the security of the supply chain of steel and aluminum products intended to be exported to the US.”
The UK also had no final contracts on drugs “to continue working,” the UK said.
The deal, signed on Monday, also confirms that American farmers can export 13,000 metres of tonnes (£29 million) of beef to the UK each year.
Original issue: June 16, 2025, 5:27pm EDT
