US-UK trade agreement unveiled at G7 summit: major tariffs reduced and new export quotas set. Steel and aluminum dispute still unresolved.

The United States and the United Kingdom jointly announced an important trade agreement. US President Donald Trump and UK Prime Minister Keir Starmer signed the trade agreement at the Group of Seven (G7) summit in Canada, lowering tariffs on most goods and setting new quotas for UK exports to the US. However, issues related to steel and aluminum exports remain unresolved. Following the release of the UK-US trade statement, President Trump stated that the agreement is "fair to both sides" and will "create a significant amount of job opportunities and income." Starmer said that the agreement signifies "a very good day for both of our countries, reflecting our true strength." According to the White House, the US plans to set quotas on steel and aluminum products from the UK, allowing them to be free from a 25% tariff within the quota. However, the UK must guarantee the security of the steel supply chain. The final quota level will be determined by the US Secretary of Commerce, Howard Lutnick. The UK government has committed to meeting the US requirements for the security of the steel and aluminum supply chain and ownership of related production facilities for products intended for export to the US. In return, the US plans to quickly establish most favored nation tariff quotas for UK-produced steel and aluminum products and certain derived products while implementing the Generalized System of Preferences. British car manufacturers have been granted permission to export 100,000 cars to the US annually, with tariffs lowered to 10%, below the 25% tariffs applied to other countries. Tariffs on aerospace products from UK manufacturers, including aircraft and important components, have been eliminated. The reduction in US tariffs is accompanied by greater market access for US-manufactured products, including beef and ethanol. The US and UK have also committed to enhancing the aerospace and aviation manufacturing supply chain by establishing a duty-free bilateral trade mechanism for certain aerospace products. In the medical products sector, the US and UK governments have jointly committed to negotiating significantly preferential treatment for drugs and drug ingredients originating from the UK. This is subject to the results of the US government's investigation under Section 232 of certain drug and drug ingredient supply chain security standards. The White House confirmed that the related tax plan will take effect seven days after it is published in the Federal Register. When asked if the agreement can protect the UK from any future tariff threats, Trump replied, "The UK has been very well protected." He added, "Do you know why? Because I like them. That's their ultimate protection." Since Trump began his second term as President and imposed a series of tariffs on global trading partners, the UK is the first country to reach a trade agreement with the US. However, due to unresolved details, the implementation of the trade agreement has been delayed.