The United States has formalized a quota for car imports for the UK
The US-UK trade agreement, formalized today, sets a quota for British car imports to the US and raises tariffs on aircraft parts, but embellishes an earlier promise to allocate quotas for steel and aluminum from the UK.
US President Donald Trump and British Prime Minister Keir Starmer presented the final agreement today on the sidelines of the G7 summit in the Canadian province of Alberta.
Both leaders praised the deal, with Trump calling the relationship between the two countries "fantastic," and Starmer saying it was a "really important day."
Although there are few details, the agreement limits the number of UK-made vehicles that can be imported into the US to 100,000 and imposes a 10% tariff on these vehicles. Since April 3, the United States has been charging a 25% tariff on all imported cars. The deal also provides for the abolition of US tariffs on British-made aircraft.
In early May, the Trump administration promised to develop a quota system for steel and aluminum from the UK. On June 4, Trump raised tariffs on foreign-made steel and aluminum to 50%, but kept the tariff rate for the UK at 25%.
The agreement signed today only promises that the US administration will do this "in the future."
If a quota system is created for the UK, it will allow imports of steel and aluminum without a tariff of 25%, the White House said.
The trade agreement retains in effect the sweeping 10 percent tax on all UK imports that Trump imposed on April 2 as part of his "Liberation Day" tariff announcement, which referred to an "economic emergency" created by the US trade deficit.
On July 31, the U.
S. Federal Court of Appeals will hear arguments from the administration and a group of plaintiffs, including many U.
S. states that challenge Trump's authority to impose tariffs, citing economic emergencies.
Trump has imposed tariffs on imports of steel, aluminum, cars and auto parts, using other powers that have not yet been challenged in the courts.
The trade deal with Britain is one of two, in addition to the tentative deal with China, that the administration has been discussing since Trump began imposing tariffs on almost all U.
S. trading partners — after promising in early April to complete "90 deals in 90 days."
Trump said today, "We have a trade agreement with the EU, and we have many, many more that you will see."
The Trump administration has not yet submitted any other trade agreement.