Trump and Starmer Sign U.S.-U.K. Trade Deal Targeting Auto and Aerospace Sectors

President Donald Trump and U.K. Prime Minister Keir Starmer announced a new trade agreement Monday during the G7 summit in the Canadian Rockies. The deal lowers tariffs on British automobiles and aerospace products, though talks remain ongoing regarding steel and pharmaceuticals. Trump praised the agreement as “a fair deal for both” nations that would create jobs and income. Despite initially misstating that the deal was with the European Union, he quickly corrected himself, affirming the pact was with the United Kingdom. Starmer called it “a very good day” for both countries and a “sign of strength.” Under the agreement, U.S. tariffs on British aerospace goods—previously 10%—are eliminated, benefiting firms like Rolls-Royce. U.K. auto tariffs will drop from 27.5% to 10%, applying to up to 100,000 vehicles annually. U.K. officials said the deal protects key sectors and employment.

However, the deal falls short on British steel. Though a May framework aimed to cut tariffs on steel and aluminum, only automotive and aerospace terms were finalized. British steel producers remain concerned, as the industry faces historic decline and rising competition from China. The White House noted further negotiations on steel would be overseen by Commerce Secretary Howard Lutnick. Both governments reaffirmed a shared commitment to supply chain security, particularly for steel and aluminum. Pharmaceuticals were also excluded, with U.K. officials confirming that discussions on that front will continue.