US President Donald Trump has signed an executive order directing federal agencies to implement a trade agreement with the UK that was unveiled in May. The agreement aims to significantly reduce tariffs and expand access to key UK markets.
Key Aspects of the Agreement
Central to the agreement is the reduction of the automotive tariff from 27.5% to 10% for the first 100,000 UK-manufactured vehicles shipped to the US market annually. 'This is a very good day for both of our countries, a real sign of strength,' said UK Prime Minister Keir Starmer, confirming that the new terms will take effect immediately.
Issues in Other Industries
While sectors like automotive and aerospace celebrate the agreement, it has raised concerns in other areas. The UK has granted the US a tariff-free quota of 1.4 billion liters of bioethanol, which threatens the viability of domestic production. Negotiations regarding the treatment of steel and aluminum are still ongoing.
Reactions from UK Industries
Under pressure at home, Starmer emphasized the importance of swift implementation. The UK automotive sector has applauded the car tariff reduction, calling it a necessary boost for exports amid economic uncertainty. 'We just signed it, and it’s done,' Trump told reporters.
The trade agreement between the US and UK marks one of the most comprehensive bilateral deals in recent years and could significantly alter transatlantic economic relations, despite challenges faced in some sectors.
