At the G7 summit in Canada, President Trump has signed an executive order permitting reduced tariffs on car imports from the UK. This move comes after extensive negotiations and aims to support UK businesses amid ongoing trade discussions. However, the deal’s limitations have invited criticism from UK opposition leaders.
Trump Solidifies UK-US Tariff Agreement Amidst G7 Summit Discussions
Trump Solidifies UK-US Tariff Agreement Amidst G7 Summit Discussions
President Trump signs an executive order to lower tariffs on UK car imports while negotiations continue for broader trade agreements.
President Donald Trump has taken a significant step in US-UK trade relations by signing an executive order that will lower tariffs on cars imported from the UK. This action comes amidst high-stakes discussions during the G7 summit in Canada and signifies parts of a tariff agreement reached last month between both nations.
UK Prime Minister Sir Keir Starmer hailed the announcement as a "very important day," emphasizing its potential to provide stability for British businesses facing the effects of US tariffs. However, while the pact allows a reduction for car imports from 25% to a 10% levy on up to 100,000 vehicles, it notably does not address levies on steel imports, which remain a contentious issue.
The US tariffs have been a point of concern, especially for UK's car manufacturers and steelmakers that depend heavily on the American market. Under the new executive order, certain aerospace products will also benefit from removed tariffs, enhancing trade opportunities in that sector as well.
Despite the advancements, the deal is characterized as limited in scope compared to a comprehensive free-trade agreement, which would require Congressional approval to be realized. Critics, including opposition party leaders in the UK, have labeled this agreement a "tiny tariff deal" that fails to meet the broader trade aspirations previously discussed by UK officials.
The UK government expressed confidence in progressing towards zero tariffs on core steel products as part of ongoing negotiations. Notably, the executive order also signifies commitments related to US beef imports, increasing quotas while maintaining strict food safety standards.
In comments made at the summit, Trump acknowledged the effectiveness of Sir Keir's negotiation skills, suggesting that previous leaders did not achieve similar results in the long-standing discussions between the two nations. As the world watches the effects of these tariffs unfold, the UK government looks to continue pressing for more substantial trade agreements moving forward.
