In a landmark move, Prime Minister Sir Keir Starmer and President Donald Trump have officially sealed the much-anticipated UK-US free trade agreement, marking a significant moment in transatlantic diplomacy.
Announced publicly during a brief G7 summit press appearance in Canada, Trump confirmed: “We signed it, and it’s done.”
The agreement immediately eliminates tariffs on aerospace goods. For the UK automotive sector, which has long faced 25% duties, a new cap brings this down to 10%, offering relief to manufacturers such as Jaguar Land Rover.
While the aerospace sector sees a clean slate, steel tariffs remain partially unresolved. The US is maintaining a 25% rate on British steel until at least 9 July, although quotas under discussion may lead to the removal of these levies.
“The UK is very well protected. You know why? Because I like them,” Trump stated. “The prime minister has done a really good job.”
The pair’s camaraderie was on full display. Despite a minor fumble when Trump confused the UK with the EU, the two leaders reinforced their unity. Starmer responded graciously: “Donald, thank you very much. This now implements on car tariffs and aerospace. A really important agreement.”
Trump added: “It’s a fair deal for both. It’ll produce a lot of jobs, a lot of income.”
UK First to Secure Post-Tariff Deal
This agreement positions the UK as the first nation to strike a post-tariff accord with Trump’s administration, highlighting Britain’s new role in the global trade landscape post-Brexit.
Previously, global tariffs imposed by the US reached up to 50%, but the UK had been spared the harshest penalties. Trump’s new quotas are expected to gradually phase out remaining tariffs, especially in steel and vehicle exports.
Looking Ahead
- Tariff-free aerospace trade begins immediately.
- Car tariffs drop from 25% to 10%.
- Steel discussions continue, with possible quota-based relief.
- UK Parliament to issue a formal statement enacting the agreement.
Sir Keir, speaking on his flight to Canada, had signalled the deal was nearing implementation: “We’ve shaken on the deal and we’re at the implementing stage now. I am very confident we’re implementing it.”
As global trade policy takes centre stage at the G7, this UK-US free trade agreement stands as a defining moment for Britain’s post-Brexit economic agenda and its growing rapport with Washington.
