UK–US Trade Deal Finalised at G7: What It Means for Jobs, Cars, and Tariffs

Keir Starmer and Donald Trump announce major agreement reducing tariffs on cars and aerospace, with progress expected on steel and food safety standards

UK–US Trade Deal Signed and “Done”, Says Trump

US President Donald Trump has confirmed that a new UK–US trade deal has been signed and finalised during the G7 summit in Canada. Meeting with Prime Minister Sir Keir Starmer, Trump declared:

“We signed it, and it’s done. It’s a fair deal for both. It’ll produce a lot of jobs and a lot of income.”

Starmer hailed the deal as a "sign of strength" between the UK and US, with the agreement expected to boost key sectors, cut tariffs, and protect jobs.

What’s Included in the Deal?

• Aerospace Tariffs Cut to Zero

The US has committed to removing the 10% tariff on UK aerospace goods such as engines and aircraft parts. This is expected to take effect by the end of the month.

• Car Import Tariffs Slashed

Car tariffs will fall dramatically—from 27.5% to 10%, with a quota of 100,000 cars eligible at the lower rate annually. This change is expected to save manufacturers hundreds of millions and safeguard tens of thousands of British automotive jobs.

        X      Steel Tariff Exemptions Still in Progress

The UK remains exempt from Trump’s global 50% steel tariff, keeping its rate at 25%. However, while a complete removal was anticipated, the government says it is still working toward 0% tariffs for key UK steel products.

The White House says it will introduce a quota system for steel and aluminium at most-favoured-nation (MFN) rates—offering limited relief but no full resolution yet.

Agriculture and Food Safety: Strict UK Standards Maintained

The deal includes beef import and export quotas, with a strong emphasis that any incoming US products must meet UK food safety regulations. This ensures that chlorinated chicken and hormone-treated beef—which have sparked public concern—won’t be allowed unless they comply with UK laws.

Pharmaceuticals and Other Sectors: No Immediate Tariff Change

There are no changes to pharmaceutical tariffs as part of this agreement. However, both sides have pledged to continue negotiations, aiming for preferential trade outcomes in these areas over time.

Political Show of Unity – And Some Confusion

During a photo op in the Canadian Rockies, Trump held up the signed deal as pages blew away in the wind. Starmer quickly collected them, joking it was a "very important document".

Trump praised the Prime Minister as “a great guy,” saying:

“We’ve been talking about this deal for six years, and he’s done what others couldn’t.”
“He’s slightly more liberal than me… but we get along.”

However, Trump did mistakenly refer to it as a “trade agreement with the European Union” before correcting himself.

What This Means for the UK Economy

This deal marks a significant milestone for UK–US trade relations, especially post-Brexit. It offers immediate benefits for the automotive and aerospace industries, while showing progress on steel, food standards, and further sector negotiations.

Short-term gains include:

• Lower costs for car and aerospace exporters
• Strengthened ties with the US market
• Job protection in critical UK sectors

Medium-term challenges remain around:

• Securing full steel tariff relief
• Protecting pharmaceutical access
• Navigating Trump’s wider trade policies, including possible retaliatory tariffs

Final Thought: A Step Forward, But Not the End

While the deal is a political and economic win for both governments, some sectors—especially steel and pharma—will be watching for follow-through. Investors may see opportunities in UK automotive and aerospace shares, but ongoing trade volatility could still affect confidence.

Sources: (SKY.com, BBC.co.uk)