US and UK announce a trade deal, but steel imports are still being
negotiated
[June 17, 2025] By
JILL LAWLESS and WILL WEISSERT
KANANASKIS, Alberta (AP) — U.S. President Donald Trump and British Prime
Minister Keir Starmer said Monday that they had signed a trade deal that
will slash tariffs on U.K. auto and aerospace industry imports — but
they are still discussing how to handle steel production.
The pair spoke to reporters at the Group of Seven summit in the Canadian
Rockies, with Trump brandishing the pages of what he said was a
long-awaited agreement. The rollout was anything but smooth, however, as
Trump dropped the papers and at first said his administration had
reached an agreement with the European Union when he meant the United
Kingdom.
The president nonetheless insisted the pact is “a fair deal for both”
and would “produce a lot of jobs, a lot of income.”
“We just signed it,” Trump said, “and it's done.”
Starmer said it meant “a very good day for both our countries, a real
sign of strength.”
Reaching an agreement is significant as Trump has threatened much of the
world with steep import tariffs that have unsettled markets and raised
the possibility of a global trade war.
He has since backed off on many of his proposed levies but also
continued to suggest that administration officials were furiously
negotiating new trade pacts with dozens of countries — even as few have
actually materialized.
Trump said “the U.K. is very well protected,” from tariffs. “You know
why? Because I like them.”
The signing of the deal at the G7 followed Trump and Starmer's
announcement in May that they’d reached a framework for a trade pact
that would slash U.S. import taxes on British cars, steel and aluminum
in return for greater access to the British market for U.S. products,
including beef and ethanol.
But Monday's agreement fully covers only British cars and aerospace
materials, with more work to come on steel.
The British government said the new agreement removes U.S. tariffs on
U.K. aerospace products, exempting Britain from a 10% levy the Trump
White House has sought to impose on all other countries — a boost to
British firms, including engine-maker Rolls-Royce.
It also sets the tax on British autos at 10% from the end of the month,
down from the current 27.5%, up to a quota of 100,000 vehicles a year.
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President Donald Trump meets with Britain's Prime Minister Keir
Starmer on the sidelines of the G7 Summit, Monday, June 16, 2025, in
Kananaskis, Canada. (AP Photo/Mark Schiefelbein)
 U.K. Business and Trade Secretary
Jonathan Reynolds said the deal protects “jobs and livelihoods in
some of our most vital sectors.” Mike Hawes, chief executive of
Britain's Society of Motor Manufacturers and Traders, said it was
“great news for the U.K. automotive industry.”
But there was no final agreement to cut the tax on British steel to
zero as originally foreseen — seen as vital to preserving the U.K.'s
beleaguered steel industry. Britain's steel output has fallen 80%
since the late 1960s due to high costs and the rapid growth of
cheaper Chinese production.
Monday's agreement fleshes out the terms of the framework deal
announced in May. That framework didn’t immediately take effect,
leaving British businesses uncertain about whether the U.K. could be
exposed to any surprise hikes from Trump.
British businesses, and the U.K. government, were then blindsided
earlier this month when Trump doubled metals tariffs on countries
around the world to 50%. He later clarified the level would remain
at 25% for the U.K.
After the two leaders spoke, the White House released a statement
seeking to clarify matters, saying that with respect to steel and
aluminum, Commerce Secretary Howard Lutnick will “determine a quota
of products that can enter the United States without being subject”
to previous tariffs imposed by the Trump administration.
The British government said Monday that the plan was still for “0%
tariffs on core steel products as agreed.”
Trump’s executive order authorizing the deal contained several
references to security of supply chains, reflecting the U.S.
administration’s concerns about China. It said the U.K. “committed
to working to meet American requirements on the security of the
supply chains of steel and aluminum products intended for export to
the United States.”
There also was no final deal on pharmaceuticals, where “work will
continue,” the U.K. said.
The deal signed Monday also confirms that American farmers can
export 13,000 metric tons (29 million pounds) of beef to the U.K.
each year, and vice versa — though a British ban on hormone-treated
beef remains in place.
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