President Donald Trump has signed an executive order to lower tariffs on UK car exports to the US, activating key elements of a trade agreement formed between the two nations last month. Speaking at the G7 Summit in Canada, UK Prime Minister Sir Keir Starmer described the move as a “very important day” for both countries. The agreement follows weeks of negotiations and aims to provide relief to UK manufacturers facing pressure from earlier US tariff hikes, although it retains a 10% levy on UK goods, including vehicles, and notably excludes steel tariff relief.
Under the new terms, the US will allow up to 100,000 UK vehicles to enter at a reduced 10% tariff, compared to the 25% previously imposed. Trump also hinted at future tariff adjustments on UK steel and aluminium, without confirming specifics, stating, “We’re gonna let you have that information in a little while.” The agreement also eliminates tariffs on selected aerospace products, contributing to what Sir Keir called a “sign of strength” in the UK-US relationship. However, many critics point out that the scope is narrower than the full UK-US free trade deal long envisioned by Downing Street.
Industry leaders welcomed the move cautiously. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), said the deal would allow “many manufacturers to resume deliveries imminently,” while calling for further clarity on the administrative details. Business and Trade Secretary Jonathan Reynolds added that the agreement reflects “work happening at pace between both governments to lower the burden on UK businesses.” The UK also pledged to raise quotas on US beef imports while removing associated tariffs, though officials assured that UK food safety standards would remain intact.
Despite the White House branding the agreement a “major trade deal,” it falls short of a comprehensive trade pact, as the US President cannot unilaterally sign full free-trade agreements without Congressional approval. Trump praised Starmer for succeeding where others failed, saying, “He’s done what they haven’t been able to do in six years.” Yet criticism remains — UK Conservative leader Kemi Badenoch dismissed the arrangement as a “tiny tariff deal,” highlighting ongoing political debate over the pact’s true impact and reach.
