FX.co ★ US and UK Announce Trade Deal, Steel Imports Remain Unresolved

On Monday, U.S. President Donald Trump formalized an agreement to reduce certain tariffs on imports from the United Kingdom, as both nations strive for a more comprehensive trade pact. Announced at the G7 Summit alongside British Prime Minister Keir Starmer, the agreement provides quotas and lowers tariffs on British automobiles, while eliminating tariffs on aerospace goods. However, discussions on steel and aluminum remain ongoing. President Trump praised the U.S.-U.K. relationship as "fantastic," whereas Prime Minister Starmer described the day as “very beneficial” for both nations. Under the agreement, the U.S. intends to establish quotas for British steel and aluminum, which will be exempt from the 25% tariff, contingent on security assurances. Without this deal, the U.K. was poised to incur substantial tariffs by July 9. The accord allows British car manufacturers an annual quota of 100,000 vehicles at a reduced 10% U.S. tariff, compared to the standard 25%. In exchange, the U.K. will lower tariffs on American beef and ethanol. The agreement is slated to come into effect seven days following its publication in the Federal Register.