President Donald Trump just shook hands with U.K. Prime Minister Keir Starmer, sealing a trade deal that could rev up British car exports.
The BBC reported that at the Group of Seven summit in the Canadian Rockies, the two leaders signed an agreement slashing U.S. tariffs on U.K. autos and aerospace products, though steel and pharmaceuticals remain sticking points.
Trump and Starmer laid out a framework to cut tariffs on British cars, steel, and aluminum while boosting U.S. beef and ethanol exports. Monday’s deal delivers on part of that plan, dropping U.S. tariffs on British autos from 27.5% to 10% for up to 100,000 vehicles annually, starting this month.
“Great news for the U.K. automotive industry,” crowed Mike Hawes, CEO of Britain’s Society of Motor Manufacturers and Traders. Hawes’ enthusiasm is understandable, but let’s see if those cars actually sell before popping the champagne.
The aerospace sector also gets a break, with U.K. products like Rolls-Royce engines now exempt from a planned 10% U.S. levy. Starmer called it “a very good day for both our countries, a real sign of strength.”
British steel, battered by an 80% production drop since the 1960s due to Chinese competition, still faces U.S. tariffs of 25%, despite Trump’s earlier global hike to 50%.
The British government insists it’s pushing for “0% tariffs on core steel products as agreed,” but no deal materialized Monday. U.S. Commerce Secretary Howard Lutnick will set quotas for steel and aluminum exempt from prior tariffs, per a White House statement.
Trump’s executive order ties the deal to securing supply chains against China, hinting at geopolitical chess moves. The agreement opens the U.K. market to 13,000 metric tons of U.S. beef annually, and American farmers can import the same amount from Britain.
The U.K.’s ban on hormone-treated beef holds firm, a nod to their nanny-state tendencies that American ranchers will just have to stomach.
Trump, ever the showman, flubbed the announcement by mentioning the European Union before correcting to the United Kingdom. “We just signed it, and it’s done,” Trump declared, insisting it’s “a fair deal for both” that’ll “produce a lot of jobs, a lot of income.”
Fair? Maybe, but pharmaceuticals remain a glaring omission, with negotiations dragging on.
“Work will continue” on drugs, the U.K. government said, which sounds like code for “we’re nowhere close.” U.K. Business and Trade Secretary Jonathan Reynolds claimed the deal protects “jobs and livelihoods in some of our most vital sectors.”
Reynolds’ optimism is sweet, but vital sectors like steel are still waiting for relief. Trump’s fondness for the U.K. shone through: “The U.K. is very well protected [from tariffs]. You know why? Because I like them.”
His affection might charm Starmer, but American workers want hard numbers on those promised jobs. This deal, while a step forward, feels like half a handshake with steel and pharma left dangling.
