U.S. and U.K. Finalize Trade Agreement Covering Autos, Steel & Aluminum, Agriculture, and More

Cailian Press, June 17 (Editor: Liu Rui) — According to multiple media sources, on Monday Eastern Time, U.S. President Trump and U.K. Prime Minister Starmer jointly announced that the general terms of the trade agreement reached last month have now been finalized.

At the G7 Summit held in Canada, Trump and Starmer appeared together. Trump, waving the signed document, stated that the relationship between the U.S. and the U.K. is “very good,” adding, “We signed the agreement — it’s done.”

Starmer noted that the agreement formalizes arrangements previously reached on automobile tariffs and the aviation sector, though no specific details were disclosed. “This is a great day for both our countries and a true demonstration of strength,” he remarked.

The latest statement from the White House indicates that the new agreement spans several sectors, including steel, automobiles, ethanol, beef, and aerospace. The U.K. will expand market access worth several billion U.S. dollars for American exports—particularly beef, ethanol, and certain other agricultural products. Additionally, it will reduce or remove multiple non-tariff barriers that have negatively impacted U.S. manufacturing and posed risks to national security.

The United States plans to impose a 10% tariff on British car imports, with an annual import quota set at 100,000 vehicles. The U.K. has agreed to meet U.S. requirements concerning supply chain security and the ownership structure of steel and aluminum production facilities for exports to the U.S. Based on these conditions, the U.S. intends to promptly implement most-favored-nation (MFN) tariff-rate quotas for British steel and aluminum products, including some derivative items, under the framework of the general terms.

The two countries have agreed to negotiate preferential treatment for pharmaceuticals and pharmaceutical ingredients originating in the U.K., contingent on the results of the Section 232 investigation and the U.K.'s compliance with supply chain security standards.

The U.S. and the U.K. have further committed to strengthening the aerospace and aircraft manufacturing supply chain by establishing bilateral, duty-free trade for selected aerospace products.
Since President Trump resumed office and introduced a range of tariffs on global trading partners, the U.K. is the first country to reach a trade agreement with the U.S. However, the implementation had been delayed due to unresolved details.

The U.K. has described the agreement as a significant win for its aerospace and automotive sectors, emphasizing that it remains the only country to have secured such an arrangement with the United States. “While full implementation may take several months, we expect to deliver initial components of the agreement within weeks. This is just the beginning,” said U.K. Trade Secretary Jonathan Reynolds in an official statement.

He further stated that both parties remain committed to securing “significantly preferential outcomes” for the U.K.’s pharmaceutical industry and to continuing efforts to shield the sector from additional tariffs that may arise from the ongoing Section 232 investigation by the U.S. Department of Commerce.