US and UK Reach Trade Agreement Terms Covering Multiple Areas Including Automobiles, Steel and Aluminum, and Agricultural Products

According to multiple media reports, on Monday, Eastern Time, US President Trump and UK Prime Minister Starmer jointly announced that they had finalised the general terms of the trade agreement reached last month.

UK and US Finalise Trade Agreement

At the G7 Summit held in Canada, Trump stood alongside Starmer. Waving the document he had just signed, Trump stated that his relationship with the UK was "very good" and that "we signed the agreement, it's done."

Starmer, on the other hand, indicated that the document would implement agreements reached between the two sides on automotive tariffs and the aviation sector, but did not provide details. He said, "This is a very good day for both our countries, a true sign of strength."

According to the latest statement released by the White House, the newly reached agreement between the UK and the US covers multiple areas including steel, automobiles, ethanol, beef, and aerospace.

In terms of agricultural products:The UK will increase market access worth billions of US dollars for US exports, particularly beef, ethanol, and certain other US agricultural products. Additionally, the UK will reduce or eliminate multiple non-tariff barriers targeting US products that harm the US manufacturing base and threaten US national security.

In terms of automobiles:The US plans to set a quota of 100,000 units per year for British car imports and impose a 10% tariff.

In terms of steel and aluminum products: The UK commits to working to meet US requirements regarding the security of the supply chain for steel and aluminum products proposed for export to the US, as well as the nature of ownership of relevant production facilities. Subject to the UK meeting these requirements, the US intends to promptly establish most-favored-nation tariff quotas for steel and aluminum products, as well as certain derived steel and aluminum products, produced in the UK, within the context of implementing the General Terms.

In terms of pharmaceuticals:The US and the UK commit to negotiating significantly preferential treatment outcomes for pharmaceuticals and pharmaceutical ingredients originating from the UK. However, this is subject to the findings of the Section 232 investigation into pharmaceuticals and pharmaceutical ingredients, and the UK's compliance with certain supply chain security standards.

In terms of aerospace:The US and the UK further commit to strengthening the aerospace and aircraft manufacturing supply chain by establishing duty-free bilateral trade for certain aerospace products.

Trump's First Trade Deal

Since Trump's return to the White House and the imposition of a series of tariffs on global trading partners, the UK has been the first country to reach a trade agreement with the US. However, the implementation of this trade agreement had been delayed due to the failure to finalise the details.

The UK said the agreement was a huge win for its aerospace and automotive industries, noting that it was the only country to have reached such a deal with the US.

"It may take months to bring the trade deal into force, but we will deliver the first agreements within weeks. We won't stop there," UK Trade Secretary Jonathan Reynolds said in a statement.

He said the two countries remained committed to securing a "clearly preferential outcome" for the UK's pharmaceutical industry and would continue to work to protect the sector from any further tariffs imposed by the ongoing Section 232 investigation by the US Department of Commerce.