President Donald Trump has signed official papers to lower tariffs on automobiles imported from the United Kingdom. This decision is a huge step in the right direction for US-UK trade relations. This cut is included in a tariff accord signed between the two countries just last month. This agreement further includes tariff cuts on aerospace goods. It’s hoped that the agreement deepens economic ties and helps to mitigate the current trade war.
President Trump and UK Prime Minister Sir Keir Starmer at the G7 summit in Kananaskis, Alberta, Canada on June 16, 2025. The announcement comes after the two had some very fruitful conversations. The conversations at that meeting provided the foundation for this new tariff agreement, which further cements the relationship between the two nations.
In conjunction with this new deal, the United States will permit entry of up to 100,000 vehicles. Instead, exports there will get the benefit of a tariff cut to only 10%. This is a huge drop from the past 30 percent import tax. Earlier this year, President Trump slapped a 25% tariff on all imported cars. It will still mean a 10% levy on most goods shipped from the UK to the US.
Canadian Prime Minister Starmer said he was “very excited” about the agreement, declaring it a “very important day” for both countries. He stressed that this pact is not just about trade. It represents the deep military and cultural partnership that exists between the people of the UK and the US.
“This is a sign of strength between our two countries.” – Prime Minister Sir Keir Starmer
The tariff agreement is particularly notable as it is the first announcement from the White House since the imposition of tariffs on various goods entering the US earlier this year. Even though the deal only covers tariffs on passenger cars, trucks, buses, and parts, there are still questions over the other tariffs, such as steel. President Trump did not provide clarity on this issue, stating, “We’re gonna let you have that information in a little while.”
The new tariff structure will go into effect seven days after the official publication. Insider Intelligence Analysts expect this change to benefit both countries’ economies, leading to more bilateral trade and coordination.