US President Donald Trump signed an executive order that reduces import taxes on UK-made cars shipped to the United States on Monday. This step brings parts of a trade pact—reached last month between the two countries—into effect.
Trump made this decision shortly before leaving the G7 Summit in Kananaskis, Canada. He left early due to rising tensions in the Middle East.
UK PM Starmer Welcomes Deal
British Prime Minister Sir Keir Starmer, who spoke at the G7 Summit, welcomed the move. He called it a “very important day” for both the UK and the US.
The UK government had been negotiating with Washington to protect British businesses from increased US import duties.
Details of the Tariff Cuts
According to the order, the US will now allow up to 100,000 UK-made cars to enter the country annually at a 10% tariff. This is a reduction from the 25% tariff that had been imposed earlier this year on all car imports.
Although this deal benefits UK automakers, it does not remove tariffs on steel imports. Trump did mention that the US plans to introduce a system for steel and aluminium soon, but he did not offer details. “We’re gonna let you have that information in a little while,” he said.
Other Goods Included in the Agreement
The executive order also lifted tariffs on certain aerospace products. Sir Keir said the pact “implements on car tariffs and aerospace,” and he described it as a “sign of strength” between the two allies.
When asked about future tariffs, Trump responded, “The UK is very well protected. You know why? Because I like them.”
The new tariff rules will take effect seven days after their official publication.
Mixed Reaction in the UK
Mike Hawes, head of the Society of Motor Manufacturers and Traders, said this agreement will let “many manufacturers resume deliveries imminently.” He added, “We wait to see the full details of the deal… but this will be a huge reassurance.”
UK Business and Trade Secretary Jonathan Reynolds also welcomed the move. He described it as “the result of work happening at pace between both governments.” He confirmed that the UK would soon update Parliament on new quotas for US beef and ethanol, which are part of the broader trade agreement.
Beef Quotas Raised, Standards Maintained
As part of the agreement, the UK will remove a 20% tariff on US beef. It will also increase the import quota from 1,000 to 13,000 metric tons. However, UK officials stressed that food safety standards will not be lowered, and all imported beef must meet UK food safety laws.
Limited Scope: Not a Full Trade Deal
Although the UK government praised the pact, it is not a free-trade agreement. Trump has described it as a “major trade deal,” but legally, he cannot sign full trade agreements without Congressional approval.
Some UK opposition leaders criticised the deal. Conservative leader Kemi Badenoch called it a “tiny tariff deal.”
Even so, Trump praised PM Starmer for getting the deal done. “He’s done what other people… haven’t been able to do,” Trump said. “They’ve been talking about this deal for six years… and he’s done what they haven’t.”
