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President Trump has taken action to implement the US trade deal with the UK, with British carmakers and aerospace manufacturers poised to benefit immediately while steel producers may face delays.
The executive order signed by Trump will put into effect the US-UK agreement, which includes a reduction of American tariffs on UK cars from 27.5% to 10% for the first 100,000 vehicles shipped annually. Additionally, UK exports of aerospace components to the US will be exempt from tariffs.
The UK will be shielded from potential aerospace tariffs resulting from a US national security investigation initiated by Trump. This exemption was part of the trade deal announced by Trump on May 8.
While the UK is the only country to have secured a trade agreement with the US amid Trump’s tariff threats, Prime Minister Keir Starmer faces pressure to swiftly implement the deal.
Following a brief meeting between Trump and Starmer at the G7 summit, the trade deal was confirmed and an executive order was signed by Trump to enact it.
The UK has granted the US increased market access for beef, ethanol, and industrial products in exchange for tariff reductions.
However, negotiations are ongoing regarding the implementation of tariff reductions on British steel and aluminium exports to the US. Technical and legal issues are causing delays in finalizing these provisions.
Despite the complexities of the trade deal, both the UK and US are committed to further discussions and progress towards reducing tariffs on core steel products.
The British automobile industry has welcomed the trade deal developments, while concerns have been raised by the bioethanol industry regarding the tariff-free quota granted to US ethanol producers.