U.S. and U.K. release trade deal terms
On June 16, at the G-7 meeting in Kananaskis, Alberta, Canada, President Trump and U.K. Prime Minister Keir Starmer announced formalization of general terms for a bilateral trade agreement, operationalized by executive order. The agreement applies to trade in three broad industries:
First, in the automotive industry, the agreement sets a tariff-rate quota of 100,000 units at a tariff of 10%; beyond the quote imported U.K. vehicles will be subject to 25% tariffs. In 2024, the United States imported 96,483 light-duty vehicles from the United Kingdom, according to U.S. data, at an average wholesale value of nearly $85,000 each. This means the quota is set to accommodate most, if not all, U.K. motor vehicle exports to the United States. Auto parts produced in the United Kingdom for use in U.K.-made vehicles will also face 10% tariffs; presumably U.K.-made parts for non-U.K. vehicles will face 25% tariffs.
Second, in the aerospace industry, products for civil aircraft will be exempted from tariffs applied under other Trump administration executive actions. This measure applies largely to Rolls Royce jet engines and parts often used in U.S.-made aircraft.
Third, in the steel and aluminum industries, the agreement pledges to establish tariff-rate quota systems for metal products and derivative metal-using products at a future time. Currently, imported steel and aluminum products face duties of 50% under other Trump administration executive orders. Significant shares of U.K. metal products are not “melted and poured” in the U.K., but are made from semi-finished products imported from third countries of origin.
https://www.epi.org/policywatch/u-s-and-u-k-release-trade-deal-terms/