Seven flags of the G7 countries. /Envato Market
by Worthy News Washington D.C. Bureau Staff
(Worthy News) – President Donald Trump and British Prime Minister Sir Keir Starmer announced Monday the finalization of a major UK-US trade agreement, sealing a deal that both leaders hailed as a “win” for jobs, income, and transatlantic relations.
Meeting on the sidelines of the Group of Seven summit in Canada, the two leaders signed key documents that brought into force the trade pact they had outlined in May. The agreement reduces tariffs on British automotive exports and further opens UK markets to American agricultural goods.
“This is a great deal for both nations — it’ll produce a lot of jobs, a lot of income,” Mr. Trump said, displaying a copy of the signed documents to reporters. In a light-hearted moment, several pages fell from the binding, prompting Mr. Starmer to bend down and retrieve them. “A very important document,” he joked as both leaders laughed.
Major Terms of the Deal
The deal allows up to 100,000 British-made vehicles to enter the U.S. market annually under a 10% tariff, down from the previous 27.5%, offering significant relief to UK car manufacturers. On steel, the U.S. agreed to exempt the UK from the global 50% tariff, maintaining the original 25% rate, with further negotiations aimed at reducing this to zero.
In exchange, Britain will raise quotas for U.S. farm products, including beef and ethanol, that can enter the UK without tariffs. UK officials emphasized that American agricultural imports will still need to meet British food safety standards.
The agreement also includes U.S. commitments to remove tariffs on UK aerospace products — engines and aircraft parts — which currently stand at 10%. These changes are expected to take effect by the end of the month.
A Strengthened Partnership
“This is a very good day for both of our countries — a real sign of strength,” said Mr. Starmer, noting the pact’s benefits for vital industries like automotive and aerospace. Mr. Trump praised Starmer as a “great prime minister” and a partner who delivered where others could not. “We’ve been talking about this deal for six years, and he’s done what they haven’t been able to do,” Mr. Trump said.
The president added, “The UK is very well protected, you know why? Because I like them.”
What’s Next?
While the deal marks progress, both sides acknowledged that work remains — particularly on steel and aluminum tariffs, with Commerce Secretary Howard Lutnick tasked with setting specific quotas for duty-free imports. Discussions will also continue on pharmaceuticals and other sectors not yet addressed.
Mr. Trump teased that more trade agreements are on the horizon. “We have many, many other ones coming,” he said, signaling ongoing efforts to rebalance U.S. trade ties following his April announcement of “Liberation Day” tariffs on various partners.
As the two leaders departed the lodge where the summit is being held, Mr. Trump summed up the mood: “We signed it, and it’s done. It’s a fair deal for both. A great day.”
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