UK Secures Major Tariff Reductions in U.S. Trade Deal
(MENAFN) The United Kingdom has achieved major tariff cuts through a newly finalized trade agreement with the United States, announced on Tuesday during the G7 summit in Canada.
Prime Minister Keir Starmer and US President Donald Trump formally endorsed the pact, marking one of the most impactful economic partnerships between the two nations in recent years.
Following initial discussions in May, the deal delivers immediate advantages to vital UK industries like automotive and aerospace, although it does not fully address the persistent steel tariff issues.
Before his early exit from the summit, President Trump signed an executive order to legally implement key elements of the agreement.
“Britain would have protection against future tariffs because I like them,” Trump stated.
The new framework lowers tariffs on UK car exports to the US to 10%, a sharp drop from the prior 27.5% duty.
The aerospace industry will benefit even more substantially, with tariffs on British goods such as aircraft engines and parts being completely removed.
The UK government explained, “For the first time, the US has committed to reducing tariffs on UK aerospace goods such as engines and similar aircraft parts from the general 10% tariff being applied to all other countries, which is expected to come into force by the end of the month.”
“This deal is a huge win for the UK’s world-class aerospace sector, currently facing additional 10% tariffs, helping make companies such as Rolls-Royce more competitive and allowing them to continue to be at the cutting edge of innovation,” the statement added.
UK car manufacturers also gain relief, with the 10% tariff on exports set to take effect by month’s end, prompting the government to say they can “breathe a sigh of relief.”
Business and Trade Secretary Jonathan Reynolds praised the swift progress, noting, “Bringing trade deals into force can take several months, yet we are delivering on the first set of agreements in a matter of weeks… This government is doing all it can to reduce the pressures on businesses by lowering costs, speeding up delivery times, and helping them to navigate in a time of global uncertainty.”
The trade deal will officially come into effect seven days after it is formally published.
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