US President Donald Trump and UK Prime Minister Keir Starmer announced on Monday that they had signed a long-awaited trade agreement, significantly reducing tariffs on British automotive and aerospace exports to the United States. However, negotiations over British steel remain unresolved.
Speaking to reporters at the G7 Summit in the Canadian Rockies, Starmer hailed the deal as a &ldquo;real sign of strength&rdquo; in the UK-US relationship. &ldquo;This now implements on car tariffs and aerospace. A really important agreement. This is a very good day for both of our countries,&rdquo; he said.
President Trump echoed the sentiment, calling the agreement &ldquo;a fair deal for both&rdquo; nations, adding: &ldquo;It&rsquo;ll produce a lot of jobs, a lot of income.&rdquo;
The ceremonial rollout of the deal was not without hiccups. At one point, Trump mistakenly referred to it as a trade agreement with the European Union rather than the United Kingdom, before quickly correcting himself. A gust of wind also sent the official documents flying, prompting a brief scramble to recover them.
Despite the agreement&rsquo;s scope, discussions over British steel exports are still ongoing. When asked whether tariffs on UK steel would be scrapped entirely, Trump said, &ldquo;We&rsquo;re going to let you have that information in a little while,&rdquo; indicating that a final decision is yet to be made.
In recent months, the UK government has engaged in a series of high-level talks aimed at securing relief from tariffs first imposed by Trump on 2 April. These included a blanket 10% tariff on all UK goods, and 25% duties on both cars and steel. While the steel tariff was later raised to 50% for other nations, the UK was granted a reprieve, maintaining the existing 25% rate until at least 9 July.
Under the terms of the broader framework agreement reached last month, the United States will introduce quotas that will effectively remove tariffs on British steel and reduce tariffs on UK-built vehicles to 10%. However, implementation has yet to begin, leaving British manufacturers in a state of uncertainty.
Nonetheless, Trump appeared confident about the relationship, stating: &ldquo;The UK is very well protected,&rdquo; and praising Starmer for achieving what previous leaders had not. &ldquo;They&rsquo;ve been talking about this deal for six years. The Prime Minister&rsquo;s done what others couldn&rsquo;t. He&rsquo;s done a great job &mdash; I want to tell that to the people of the United Kingdom,&rdquo; he said.
Starmer, ahead of the G7 talks, had made clear that completing the deal would be a priority in discussions with the US President. While American hesitation had delayed the final signing of a framework unveiled six weeks earlier, both leaders ultimately overcame those hurdles to seal the pact.
With the agreement now inked, attention turns to how swiftly the two allies can implement its terms &mdash; and whether steel, long a sticking point, can finally be struck from the list of unresolved issues.

Trump and Starmer displaying signed trade deal at 2025 G7 Summit

Deal slashes tariffs on UK car and aerospace exports, while steel talks remain ongoing

UK, US Ink Trade Agreement Amid G7 Talks

Deal slashes tariffs on UK car and aerospace exports, while steel talks remain ongoing

June 17, 2025 | 15:01 IST

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