The United States and United Kingdom reached a restricted trade agreement that eliminates aerospace and automobile tariffs but steel and aluminum tariffs continue to be unresolved issues.
The G7 Summit in Canada witnessed President Donald Trump and Prime Minister Keir Starmer sign the agreement which demonstrates their mutual dedication to economic partnership. The agreement maintains current export quotas while eliminating UK aerospace export duties but fails to resolve steel tariff issues.
The United States has not imposed severe steel duties on Britain this year but the country must fulfill security and production transparency requirements to obtain complete exemption from 25% steel tariffs.
The agreement failed to include essential sectors such as pharmaceuticals. Trump declared the agreement “a fantastic day” for both nations despite his initial mistake about signing with the EU which he later corrected. Starmer shared the same opinion by describing the agreement as “a sign of strength.”
The Commerce Secretary Howard Lutnick will establish the final export quota amounts for UK steel and aluminum products. The ongoing trade negotiations aim to resolve outstanding trade restrictions before July’s new tariff deadlines become effective.
