The Hill
@thehillThe trade deal lowering U.S. tariffs on some U.K. imports has taken effect, the British government said.
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Trump and Starmer Sign Trade Deal Cutting Auto and Aerospace Tariffs
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U.S. President Donald Trump and U.K. Prime Minister Keir Starmer signed a long-anticipated bilateral trade agreement on the sidelines of the Group of Seven summit in Banff, Alberta, declaring the pact “done” after a brief signing ceremony. The deal finalises terms the two leaders outlined last month and marks the first comprehensive tariff-cutting accord Washington has concluded since the Biden-era tariff regime was replaced earlier this year.
Under the agreement, the United States will slash its import duty on up to 100,000 British-built cars to 10% from 27.5% and eliminate the 10% tariff on aircraft engines and other aerospace components. In return, the United Kingdom will raise quotas on American beef and ethanol and commit to further market-access talks. Both sides described the accord as fair and job-creating, though they acknowledged that negotiations continue on reducing tariffs on steel and aluminium, which remain at 25% for U.K. producers.
The pact is designed to shield key British exporters from steep tariff hikes imposed by Washington on many trading partners earlier this year, while giving U.S. farmers new sales opportunities. Officials said the provisions will begin phasing in once each government completes domestic legal reviews, with full implementation expected before the end of the summer.
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