The United States and the United Kingdom announce a trade agreement

US President Donald Trump and British Prime Minister Keir Starmer announced on the sidelines of the G7 summit that they had signed a trade agreement that would reduce import tariffs for the British automotive and aerospace industries. However, the parties are still discussing the issue of steel, according to Reuters.

The announced agreement specifies the terms of the framework agreement reached in May. The leaders of the countries confirmed the provision of an annual quota of 100,000 cars to British automakers, which will be imported into the US at a rate of 10%. The agreement also abolishes US tariffs on British aerospace products, including parts and aircraft.

Trump’s executive order will take effect seven days after its publication in the Federal Register, the White House said.

However, the parties did not reach a final agreement on reducing the tariff on British steel to zero, as originally planned.

According to the White House statement, the US Secretary of Commerce, after consulting with the US Trade Representative, will determine the tariff quota for British steel, aluminum, and derivative products that can be imported into the country without the application of the previous tariffs imposed by the Trump administration. Trump’s executive order authorizing the agreement contains several references to supply chain security, reflecting US concerns about the ownership of British steel production facilities.

The UK government has said it will continue to move forward and make progress towards 0% tariffs on basic steel products, as agreed.

At the same time, on June 16, the European Commission denied reports that it was ready to agree to a fixed US tariff of 10% on European goods, according to Reuters. According to the EC statement, negotiations are ongoing and no agreement has been reached at this stage.

For his part, Canadian Prime Minister Mark Carney said he had agreed with the US president that the countries should try to conclude a new economic and security agreement within 30 days. His statement came just hours after Canadian officials said the parties still had a lot of work ahead of them.

In May, the British steel sector called for clarity on when US tariffs on steel would be lifted as part of the trade agreement between the parties. Details released after the agreement was announced indicated that the parties still had to formalize certain requirements.

As reported by GMK Center, the British government is working to prevent the country’s largest steel producer, Tata Steel, from losing duty-free access to the US market under the trade agreement between Starmer and Trump. The company, which operates a steel mill in Port Talbot, fears that it may be excluded from the agreement due to the origin of some of its products.