POLITICO — 2025-06-17
News from Brussels
U.S. President Donald Trump has agreed to lower tariffs on British autos from 25 percent to 10 percent by the end of June, after signing a U.K.-U.S. trade deal with Keir Starmer.
Brandishing the signed copy of the deal, after originally dropping the papers on the ground, Trump said the deal would “produce a lot of jobs, a lot of income.”
However, the final agreement — signed at the G7 summit in Kananaskis, Canada — has omitted a key part of the original deal.
Steel and aluminum tariffs will, for now, remain at 25 percent instead of dropping to 0 percent as originally agreed.
British officials say the two sides will continue to negotiate on cutting these tariffs.
Standing beside Trump, Starmer said: “This now implements on car tariffs and aerospace of our really important agreement, and so this is a very good day for both of our countries.”
Trump also appeared to suggest Britain will be protected from further universal tariffs.
He said: “The U.K. is very well protected, you know why? Because I like ‘em, that’s why. That’s their ultimate protection.”
Outlined in a U.S. order, the deal will see the Trump administration commit to carving out exemptions for U.K. aerospace goods, such as engines and similar aircraft parts, from the baseline 10 percent tariff on most U.S. imports.
U.K. aerospace parts are also set to be excluded from any further tariffs imposed on the sector following a national security review by the Trump administration.
U.K. Trade Secretary Jonathan Reynolds signaled last week that negotiations to lower U.S. tariffs on U.K. steel and aluminum could take longer.
The focus of current discussions is “not about who owns it — it’s the melt and pour rules,” he told reporters, referring to rules which would mean that steel must be melted and poured in the U.K. to qualify for tariff relief.
Both countries will also remain focused on securing preferential outcomes for further tariffs the White House might impose on pharmaceuticals as part of Section 232 investigations.
Reynolds said: “Bringing trade deals into force can take several months, yet we are delivering on the first set of agreements in a matter of weeks. And we won’t stop there.”