President Donald Trump has signed an executive order that will lower tariffs on cars from the UK being shipped to the United States. This move is part of a tariff agreement made between the two countries last month. The announcement came during the G7 summit in Canada, where UK Prime Minister Sir Keir Starmer hailed it as a significant day for both nations.
The executive order allows up to 100,000 UK cars to enter the US at a 10% tariff, a reduction from the 25% tax that was imposed earlier this year. However, the deal still includes a 10% levy on most UK goods and does not address the anticipated removal of tariffs on steel imports.
This agreement follows weeks of discussions aimed at implementing parts of the deal, which the UK government hopes will protect British businesses from the effects of Trump’s tariffs. The deal is the first announced by the White House since the US imposed broad tariffs on various goods earlier this year.
In his remarks, Trump noted that the agreement reflects a strong relationship between the UK and the US. He indicated that the UK was "very well protected" under this deal, adding that he has a favorable view of the country. Starmer described the agreement as a "sign of strength" between the two nations.
While the deal includes some positive changes, it has not been without criticism. Some UK opposition parties have labeled it a "tiny tariff deal," suggesting that the benefits may not be as substantial as hoped. The UK government has assured that it will continue to work towards reducing tariffs on key products, particularly steel.
In addition to the car tariff reductions, the order also includes the removal of tariffs on certain aerospace products. The UK government plans to update Parliament on the implementation of quotas related to US beef and ethanol as part of the agreement.
Overall, while the tariff deal has been welcomed by some, it remains a limited arrangement compared to the comprehensive trade agreements that have been discussed in the past. The US president does not have the authority to finalize free-trade agreements without Congress’s approval, which adds another layer of complexity to future negotiations.