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US and UK finalize trade agreement to lower tariffs

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US and UK finalize trade agreement to lower tariffs
U.S. President Donald Trump and British Prime Minister Keir Starmer signed a trade deal at the G7 Summit in Kananaskis, Canada, to reduce tariffs and boost trade between their countries. The agreement, first outlined last month, aims to ease trade barriers for key industries, including cars, aerospace, and agriculture. Under the deal, the U.S. will lower tariffs on British cars from 27.5% to 10% for up to 100,000 vehicles each year, helping companies like Jaguar Land Rover.

Tariffs on UK aerospace products, such as aircraft parts, will drop to zero, benefiting British manufacturers. In return, the UK will increase tariff-free quotas for American beef and ethanol, supporting U.S. farmers and exporters. However, the agreement does not yet include a full reduction of steel tariffs, which remain at 25% for the UK, compared to 50% for other countries. Both leaders are still negotiating to lower these tariffs further, with hopes of reaching zero soon.

Starmer called the deal a “major win” for both nations, while Trump praised it as a fair agreement that will create jobs. The signing had a light moment when Trump accidentally dropped the document, and Starmer picked it up. Trump briefly miscalled it a deal with the European Union before clarifying it was with the UK. This agreement marks the first major trade deal since Trump introduced widespread tariffs earlier this year, showing progress in U.S.-UK economic ties.