Trump, UK's Keir Starmer Strike G7 Trade Deal: Aerospace Tariffs Slashed, Auto Quotas Set—Steel, Aluminum Still In Limbo

President Donald Trump and British Prime Minister Keir Starmer signed a bilateral trade agreement Monday at the G7 Summit, formally reducing tariffs on select sectors while leaving critical steel and aluminum import quotas undetermined.

What Happened: The deal eliminates tariffs on UK aerospace exports and reaffirms automotive quotas, but steel and aluminum remain subject to pending Commerce Department review, reported Reuters.

Commerce Secretary Howard Lutnick will set quota levels for British steel imports exempt from 25% tariffs, contingent on UK security demonstrations for supply chains and production facilities.

“We signed it and it’s done,” Trump said, holding the signed document. Starmer called it “a very good day for both of our countries, a real sign of strength.”

The agreement grants British automakers an annual quota of 100,000 vehicles at 10% tariff rates, significantly below the 25% imposed on other nations.

Why It Matters: Major UK manufacturers, including Rolls-Royce Holdings and Aston Martin, benefit from the automotive provisions, while General Motors Co. GM, Ford Motor Co. F, and Stellantis NV STLA have previously criticized the deal’s preferential treatment.

The aerospace sector eliminates all tariffs on UK parts and planes under the executive order. Britain avoided the 50% steel and aluminum tariffs imposed on other countries earlier this month, but faced potential elevated tariffs starting July 9 without this agreement.

Critical pharmaceutical sector negotiations remain ongoing. UK Trade Secretary Jonathan Reynolds said both countries seek “significantly preferential outcomes” for pharmaceuticals while protecting against further Section 232 investigation tariffs, according to the report.

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