UK-US Trade Deal Is 'Done', But Tariffs On Steel Imports Could Take Longer To Finalise

(MENAFN- Live Mint) The UK-US trade deal has been signed and is "decided and is“done”, US President Donald Trump said as he met with UK Prime Minister Sir Keir Starmer at the G7 summit on Monday. "It's a fair deal for both - going to produce a lot

"We signed it and it's done," Trump said, incorrectly calling it a trade agreement wit the Eurohpean Union, before making clear the deal was with Britain.

UK PM Keir Starmer said the completed deal“implements on car tariffs and aerospace”. He described the“important” agreement as a“sign of strength” between Britain and America.

However, as the two leaders met at the G7 summit in Kananaskis, Alberta, there was a signal from the President that agreement about tariffs on British steel exports to the US could take longer to finalise.

“We're gonna let you have that information in little while,” he was qupted by PA media as saying when asked by reporters about steel tariffs.

In recent months, the UK has held a series of engagements aimed at securing a reduction in the tariffs Trump imposed on Britain and the rest of the world on April 2.

The UK-US trade deal

Along with 10% tariffs on all British goods, Trump imposed 25% levies on cars and steel. He later increased the tariff on steel to 50%, but gave the UK a reprieve, keeping its rate at 25% until at least July 9.

The latest agreement on Monday formally lowered some tariffs on imports from Britain as the countries continue working toward a formal trade deal.

The deal reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the UK aerospace sector, but the issue of steel and aluminum remained unresolved.

Under the broad terms of last month's agreement, the US is set to implement quotas that will effectively eliminate the tariff on British steel and reduce the tariff on UK vehicles to 10%.

Sir Keir signalled to reporters that the car and aerospace elements of the deal had been finalised.

The two leaders reaffirmed a plan to give British carmakers an annual quota of 100,000 cars that can be sent to the US at a 10% tariff rate, less than the 25% rates other countries face.

According to Reuters, Britain was the first country to agree on a deal for lower tariffs from Trump, with the US reducing tariffs on imports of UK cars, aluminum and steel, and Britain agreeing to lower tariffs on US beef and ethanol.

"The deal includes billions of dollars of increased market access for American exports, especially for beef, ethanol, and certain other American agricultural exports," part of the agreement read.

"In addition, the United Kingdom will reduce or eliminate numerous non-tariff barriers that unfairly discriminate against American products, hurt the United States' manufacturing base, and threaten the national security of the United States," it added.

The agreement further stateg that imports of aluminum articles or derivative aluminum articles that are products of the United Kingdom in excess of the tariff-rate quota established by the Secretary shall remain subject to the duties set forth in Proclamation 9704, as amended.

'Quota on steel and aluminum imports'

Meanwhile, the US intends to impose a quota on steel and aluminum imports from the UK that would be exempt from 25% tariffs, but it is conditioned upon Britain's demonstrating security on steel supply chains and production facilities, according to an executive order released by the White House, Reuters reported.

The quota level will be set by Commerce Secretary Howard Lutnick, the White House said.

Britain had avoided tariffs of up to 50% on steel and aluminum that the US imposed on other countries earlier this month, but it could have faced elevated tariffs starting July 9 unless a deal to implement the tariff reduction was reached.

(With inputs from PA media, Reuters)

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