Trump Finalizes Key Trade Agreement with the U.K

According to a recent publication by BBC News, U.S. President Donald Trump and U.K. Prime Minister Keir Starmer have inked a new agreement aimed at easing certain trade restrictions between their nations. This deal, which activates portions of an earlier arrangement from May, specifically lowers tariffs on British cars entering the U.S.,while maintaining a 10% tariff on most other goods from the U.K. Notably, the anticipated removal of the 25% tariff on steel imports remains unaddressed.

The new tariff regulations will take effect one week after they are officially published.

During remarks at the G7 summit in Canada, Sir Keir emphasized that this was a “notable day” for both countries involved. This agreement marks the first major announcement from the White House since it implemented extensive tariffs on various imports as part of its strategy to correct trade imbalances globally. The United Kingdom has been viewed as securing a relatively advantageous deal given its dependence on American markets for car and steel exports; however, many tariffs still hang in limbo.

As reported by BBC News, Trump’s order dated June 16 allows for up to 100,000 vehicles manufactured in the U.K. to enter America with only a 10% tariff—down from an earlier rate of 25%. this adjustment aligns with what was agreed upon last month.

The order also mentioned plans for establishing similar arrangements concerning steel and aluminum imports but lacked specific details about how this would be implemented.

Furthermore, BBC’s coverage highlighted that this latest agreement is considerably narrower then what has been previously discussed regarding comprehensive trade deals between London and Washington. The terms signed off on June 16 appear more limited compared to those initially proposed last month.

While Trump has touted this arrangement as a “major trade deal,” it’s important to note that it doesn’t qualify as such since he lacks congressional authority to finalize free-trade agreements independently.