The President of the United States, Donald Trump, and British Prime Minister Keir Starmer have signed a trade agreement between the United Kingdom and the United States on the sidelines of the G7 summit held in Canada.
Trump stated that the United Kingdom will be protected from additional trade tariffs „because I like them.”
The deal, officially presented at the Kananaskis summit in Canada, applies particularly to the aerospace and automotive industries, as reported by The Guardian.
According to details provided by the Department for Business, Energy & Industrial Strategy of the United Kingdom, the aerospace sector will no longer be subject to tariffs from the United States, while the automotive industry will benefit from a significant reduction - from 25% to 10%.
However, concerning the steel industry, the 25% tariff remains, although it is lower than the 50% duty imposed globally by the US for steel and aluminum.
London specified that Trump and Starmer have agreed to work together to reduce tariffs to 0% for certain steel products.
Tensions around British Steel
However, an executive order from the American administration indicates a potential snag regarding steel. Washington is seeking assurances regarding the Chinese owners of British Steel.
The document explicitly mentions that the United Kingdom has committed to meeting US security requirements regarding supply chains for steel and aluminum products, as well as clarifications on the "nature of ownership of production facilities."
Concerns revolve around the Jingye Group, which owns British Steel, despite the temporary takeover by the British government in April to prevent the closure of the Scunthorpe plant. The Trump administration is demanding assurances that British Steel is not being used as a way to circumvent American tariffs.
Unusual compliments for Starmer
Trump continued his series of complimentary remarks towards Keir Starmer, even though the two leaders are at opposite ends of the political spectrum: "We are partners, allies, and long-time friends - and now we've also become friends. He's a little more liberal than me," joked the US President.
When asked if the United Kingdom is now protected from tariffs, Trump replied: "It is very well protected. You know why? Because I like them - that's their ultimate protection."
He added: "The Prime Minister has done an excellent job. I tell the citizens of the United Kingdom that he has achieved what others have been unable to do for six years. He has done a very, very good job."