Trump and Starmer Sign Trade Deal at G7 Summit

KANANASKIS, Alberta (AP) — U.S. President Donald Trump and British Prime Minister Keir Starmer announced on Monday that they have officially signed a trade agreement aimed at reducing tariffs on automotive and aerospace imports from the United Kingdom. The announcement was made during the Group of Seven summit held in the picturesque Canadian Rockies.

Details of the Agreement

Despite a somewhat bumpy rollout — which included Trump accidentally mixing up details about agreements with the European Union instead of the U.K. — both leaders expressed optimism about the implications of the deal. Trump characterized the agreement as “a fair deal for both” nations, predicting it will “produce a lot of jobs, a lot of income.”

Trump proclaimed, “We just signed it, and it’s done,” while Starmer described it as “a very good day for both our countries, a real sign of strength.”

Significance of the Trade Deal

The trade deal comes at a crucial time when Trump has previously threatened numerous countries with steep import tariffs, raising the specter of a global trade war. Although he has since retreated from many of these threats, the U.S. administration continues to pursue new trade agreements worldwide.

Under this new agreement, U.S. tariffs on U.K. aerospace products will be lifted, granting significant relief to British firms, including notable engine maker Rolls-Royce. The tariffs on British automobiles will also see a reduction to 10% from the previous 27.5% for a quota of 100,000 vehicles annually.

Outstanding Issues: Steel and Pharmaceuticals

However, the agreement falls short of a complete resolution regarding steel imports. There was no final agreement to eliminate the tax on British steel, an issue that remains critical for the U.K.’s struggling steel industry, which has seen production plummet by 80% since the late 1960s due to high costs and competition from cheaper Chinese products.

While Monday’s agreement represents an expansion of the framework deal announced in May, businesses in the U.K. remain cautious as there is still work required to finalize arrangements concerning steel. Trump’s administration had previously raised metals tariffs to 50% globally but later affirmed that the rate for the U.K. would remain at 25%.

In a bid to clarify the situation regarding steel and aluminum, the White House indicated that Commerce Secretary Howard Lutnick will determine a quota for products that can enter the U.S. without facing previously imposed tariffs.

In addition, the British government reiterated that they aim to achieve “0% tariffs on core steel products as agreed.”

Yet, the deal remains incomplete in other sectors as well, particularly pharmaceuticals, where discussions will continue.

Additional Provisions

The deal also ensures that American farmers can export 13,000 metric tons (29 million pounds) of beef to the U.K. each year, maintaining the British prohibition on hormone-treated beef.

This trade agreement marks a significant step in U.S.-U.K. relations but highlights the ongoing challenges these nations face in finalizing a comprehensive trade policy that addresses all sectors effectively.