**UK-US Tariff Deal: Trump Signs Order Easing Car Tariffs Amid Steel Concerns**

Thu Jul 17 2025 16:12:31 GMT+0300 (Eastern European Summer Time)
**UK-US Tariff Deal: Trump Signs Order Easing Car Tariffs Amid Steel Concerns**

President Trump authorizes reduced tariffs on UK car imports, signaling a complex trade agreement between the US and the UK.


The latest tariff deal aims to support British businesses, although significant levies on steel remain unaddressed, reflecting ongoing trade tensions.

In a move aimed at reducing trade tensions, President Donald Trump has signed an executive order to implement a tariff agreement that diminishes tariffs on UK cars entering the United States. This decision comes in the wake of discussions between the two countries, highlighting a significant moment during the G7 summit in Canada, where British Prime Minister Sir Keir Starmer praised the outcome as a "very important day" for both nations.

Despite the positive steps, the deal imposes a 10% tariff on most UK goods, including vehicles, leaving unresolved issues around steel imports, a major concern for the UK manufacturing sector. The unveiled tariff deal is the first substantive announcement since Trump imposed broad tariffs on varying goods entering the US earlier this year, raising vigilance in international markets including the UK.

Under the newly signed order, the US will allow up to 100,000 cars to enter from the UK with a reduced 10% tariff, a significant decrease from the previously enforced 25% tax on car imports. While specifications for a similar tariff system on steel and aluminum were hinted at, no detailed information was provided, leaving future implications uncertain.

In light of the new agreement, Sir Keir expressed optimism about trade relations with the US, asserting that the deal represents a strong alliance. However, the chief executive of the Society of Motor Manufacturers and Traders, Mike Hawes, highlighted the need to analyze the fine print of the arrangement and how it will affect the logistics of car deliveries to the US market.

Additionally, the tariff order is set to remove tariffs on select aerospace products and modify US beef export quotas, which are traditionally subject to a 20% tariff. Yet, the UK government has maintained its commitment to uphold strict food safety standards, ensuring imported US beef aligns with established regulations.

While ministers in the UK view the US tariff deal as a step toward strengthening bilateral trade along with recent agreements with the European Union and India, sceptics argue that the scope of this agreement falls short of an extensive free trade agreement, a notion driven home by Conservative leader Kemi Badenoch who labeled it a "tiny tariff deal."

Despite the ongoing complexities, Trump has publicly acknowledged Starmer’s efforts in securing the deal, suggesting a dedication to progressing US-UK trade relations amidst a backdrop of significant economic challenges globally.

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