On Monday, June 16, while at the G7 Summit in Alberta, Canada, President Trump signed an agreement with the U.K. to lower tariffs on certain British imports including automobiles and aerospace products. The agreement, initially announced as a framework deal in May, establishes an annual quota for British carmakers of 100,000 automobiles at a tariff rate of 10%. The deal also eliminates tariffs on the British aerospace industry.
The agreement, which will go into effect seven days after its publication in the Federal Register according to an Executive Order published by the White House, also includes a plan for U.S. Commerce Secretary Howard Lutnick to establish a quota on steel and aluminum products and derivatives that would give the U.K. relief from the current 25% tariff rate—but this is conditioned upon the U.K. “working to meet American requirements” on the security of steel and aluminum supply chains.
In a statement following the announcement, U.K. Trade Secretary Jonathan Reynolds stated that the two sides agreed to reciprocal access for 13,000 metric tons of beef, while confirming that beef must meet the U.K.’s food safety standards. President Trump’s executive order also states that the deal included “billions of dollars of increased market access” for American products including “beef, ethanol, and certain other American agricultural exports,” although it did not provide details. Pharmaceuticals were left untouched, with both sides indicating that negotiations on this sector would continue.
The remainder of the G7 Summit and the following days saw more mixed news on trade deals, as President Trump departed the summit early amid rising tensions in the Middle East. On Monday, President Trump and Canadian Prime Minister Mark Carney committed to a 30-day countdown to negotiate a trade agreement, and South Korean Minister for Trade Yeo Han-koo indicated on Tuesday that the country intended to intensify negotiation efforts, with the goal of reaching a deal with the U.S. in the next several weeks.
On the other hand, progress towards deals with Japan and the EU remained slow, according to remarks by President Trump to reporters on Tuesday. Stating that Japan was being “tough,” and that the EU had yet to offer a deal that he considered fair, President Trump emphasized that both countries would have to pay whatever rates the U.S. dictates if they fail to reach a deal with Washington. European Commission President Usula von der Leyen, meanwhile, told reporters at the G7 summit that talks were “complex,” but advancing, and reiterated the bloc’s objective to reach a deal before the Trump Administration’s reciprocal tariff pause ends in July. President von der Leyen indicated that she was “pushing hard” to pick up speed in negotiations that are currently “mixed,” stating that “we will see what the end brings.”
The Trump Administration has signaled in recent days that the 90-day pause on the high, near-universal tariff rates announced on April 2nd could be extended with respect to countries engaged in good faith negotiations. On Tuesday, however, President Trump reiterated his threat to send letters to countries’ leaders stating, “this is what you’re going to pay, otherwise you don’t have to do business with us.” The pause is currently set to expire on July 9th.
