U.S. President Donald Trump signed an executive order on the 16th (local time) to implement parts of the agreement made with the United Kingdom during trade negotiations in May.
As a result of this action, the 27.5% tariff imposed on British cars will be reduced to 10% within an annual limit of 100,000 units, and British jet engines and aerospace parts will also be exempt from tariffs.
Previously, President Trump noted on the 8th of last month in a White House announcement regarding the U.S.-U.K. trade agreement that if the U.K. accepts Washington’s condition of excluding China from the global supply chain, it would exempt some U.S. national security tariffs.
However, the executive order implemented on that day omitted the complete removal of steel tariffs agreed upon by the leaders of both countries in May. According to the British government, technical and legal issues have delayed the negotiations for the implementation of steel-related matters, and it is expected that the coordination will be completed by the end of this month at the earliest. Until the negotiations are concluded, a 25% tariff will continue to apply to British steel.
In exchange for this tariff reduction, the U.S. agreed to expand market access for American beef, ethanol, and manufactured goods in the U.K.
President Trump and British Prime Minister Keir Starmer discussed the trade agreement directly during a brief meeting at the G7 summit in Canada. Trump stated, “It was a fair transaction, and it will create many jobs and revenue,” adding, “There will be many more agreements like this in the future.” Prime Minister Starmer also evaluated it as “a very good day for both countries and a signal of a truly strong alliance.”
Meanwhile, since President Trump imposed reciprocal tariffs on all U.S. trading partners on April 9 and declared a 90-day grace period, the only trade agreement formally signed is the one with the U.K.
High-ranking officials from the U.S. Treasury, Trade, and Commerce Departments have had talks with China twice (each lasting 6 days), several times with Japan, and multiple discussions with the EU, but none have resulted in formal agreements. On Sunday, a 70-minute ministerial-level meeting between the U.S. and Japan was also held, but it too did not reach an agreement.