UK aerospace sector will face no tariffs from the US while auto industry lowered to 10% from 25%
Keir Starmer and Donald Trump have signed off a UK-US trade deal at the G7 summit in Canada, with the US president saying Britain would have protection against future tariffs “because I like them”.
The two leaders presented the deal, which covers aerospace and the auto sector, at the G7 venue in Kananaskis, Alberta.
Asked about steel by reporters, Trump said: “We’re going to let you have that information in a little while.”
Under details released by the Department for Business and Trade, the UK aerospace sector will face no tariffs at all from the US, while the auto industry will have 10% tariffs, down from 25%.
The steel industry still faces 25% tariffs for now, although this is less than the US’s global rate of 50% on steel and aluminium. The UK business department said the two leaders had pledged to “make progress towards 0% tariffs on core steel products as agreed”.
However, the US executive order implementing the deal highlighted a possible hiccup over steel tariffs. The US still wants assurances about the Chinese owners of British Steel.
In a paragraph setting out a future move to “most-favoured-nation rates for steel and aluminum articles”, the order says the UK has “committed to working to meet American requirements on the security of the supply chains of steel and aluminum products intended for export to the United States and on the nature of ownership of relevant production facilities”.
