US UK trade deal: Trump says deal is 'done' as he meets Keir Starmer at G7 summit - what does it mean for tariffs on British steel, car and aerospace?
The UK-US trade deal has been signed and is “done”, US President Donald Trump said as he met with Sir Keir Starmer at the G7 summit.
The Prime Minister said the completed deal “implements on car tariffs and aerospace”, and described the agreement as a “sign of strength” between Britain and America. However, as the two leaders met at the G7 summit in Kananaskis, Alberta, there was a signal from the President that agreement about tariffs on British steel exports to the US could take longer to finalise.
“We’re gonna let you have that information in little while,” he said when asked by reporters about steel tariffs. In recent months, the UK has held a series of engagements aimed at securing a reduction in the tariffs Mr Trump imposed on Britain and the rest of the world on April 2.
Along with 10% tariffs on all British goods, the President imposed 25% levies on cars and steel. He later increased the tariff on steel to 50%, but gave the UK a reprieve, keeping its rate at 25% until at least July 9.
Under the broad terms of last month’s agreement, the US is set to implement quotas that will effectively eliminate the tariff on British steel and reduce the tariff on UK vehicles to 10%. Sir Keir signalled to reporters that the car and aerospace elements of the deal had been finalised.
As they met, the PM told the US President: “Donald, thank you very much. This now implements on car tariffs and aerospace. A really important agreement. And so this is a very good day for both of our countries, a real sign of strength.”
While uncertainty remains about American tariffs on UK steel, the US president claimed Britain was protected from other tariffs in future. He told reporters: “The UK is very well protected, you know why? Because I like them.”
As the pair exited a mountain lodge in the Canadian Rockies where the summit is being held, Mr Trump held up a physical copy of the trade agreement to show reporters. Several leaves of paper fell from the binding, and Sir Keir quickly stooped to pick them up, saying: “A very important document.”
The US president also appeared to mistakenly refer to a “trade agreement with the European Union” at one point as he stood alongside the British Prime Minister. The terms of the deal were agreed in May, but neither side had yet taken the necessary steps to reduce tariffs.
Reports have since suggested the US could also push for the NHS to pay more for American drugs in exchange for softened tariffs, with White House sources telling the Telegraph the service would be expected to pay higher prices. Downing Street insisted the Government will “only ever sign trade agreements that align with the UK’s national interests” but did not rule out discussing the issue with Washington.