Trump's News: UK-US Deal signed, Steel Tariffs and US-China Talks
- GMCCTradeteam
- Jun 13
- 3 min read
Updated: Jun 27
UK-US Economic Prosperity Deal Announced at G7 Summit
President Trump and Prime Minister Starmer announced at the Summit they had successfully signed the trade deal, which had been announced last month.
The Agreement includes:
A quota of 100,000 UK-made cars per year can enter the U.S. at a 10% tariff, lowering it from the previous 25-27.5% levels. Beyond this quota , the standard 25% Section 232 Tariff will apply.
UK aerospace products - from aircrafts to parts - have been eliminated lifting previously imposed duties. A hug win for the sector.
Steel And aluminium: The 25% tariff has been reduced to zero, however, final terms depend on the UK meeting U.S. demands around supply-chain security and ownership clarity - primarily focusing on the British Steel's Chinese ownership; and a U.S.-administered quota will apply once assurances are in place; absent that, steel/aluminium imports face re-imposition of tariffs starting July 9
Agriculture (Beef & Ethanol):
UK exporters receive tariff-free access for 13,000 metric tons of beef
U.S. ethanol exports to the UK are duty-free, while British ethanol access to the U.S. benefits from the reciprocal approach
The UK maintains strict food-safety standards, including its hormone-free beef ban.
Baseline Reciprocal Tariff
A 10% general tariff remains on most UK goods entering the U.S., aligning with Trump’s April tariff framework apnews.com+15standard.co.uk+15fastmarkets.com+15.
Both sides continue discussions on reducing or removing these reciprocal tariffs across other sectors .
Pharmaceuticals & Future Talks
While no immediate tariff cuts were made on pharmaceuticals, both governments committed to negotiating “significantly preferential”
Further areas—such as digital trade, intellectual property, labor, environment, and standards—remain under active negotiation.
Susana Córdoba, Head of International Trade at GM Chamber said 'The deal provides a real relief to the automotive and aerospace industries in particular, which we hope will help with the economic fallout after the reciprocal tariffs were announced, which saw UK exports fall dramatically - 33% month-on-month in April - resulting in a £2bn loss in April alone, driving UK's trade deficit to its highest level since early 2022'. We urge the UK government as companies operating in the Steel and Manufacturing Sectors continue to await for the final details of the agreement'.
2. UK–China Talks in London: Key Outcomes
Hosting major trade diplomacy: London hosted two days of US–China discussions (9–10 June) at Lancaster House, signalling broad support from the UK government for a global push to defuse ongoing tariff battles .
A fragile “truce” framework announced: Senior U.S. officials (Treasury Sec. Bessent, Commerce Sec.
Lutnick, USTR Greer) and China’s Vice Premier He Lifeng, among others, agreed on a framework to implement a 90-day Geneva truce on heavy tariffs
Highlights include:
Tariffs frozen, with U.S. maintaining a 55% rate on Chinese goods and China a 10% rate on U.S. imports.
Lifted export restrictions: China will ease rare‑earth mineral export controls; the U.S. will reduce visa limitations on Chinese students.
More to come: The framework lacks detailed terms and enforcement mechanisms. A formal, comprehensive deal is expected by 10 August, but concrete follow-through is uncertain .
London talks delivered a preliminary truce, although most expert say this is a flaky truce, suspending tariff escalation and opening tentative access to rare earths, as substantive commitments and enforcement remain unresolved.
Sources: NY Post, The Times, The Independent.co.uk, Washington Post, AP News, The Guardian, Reuters, Dentons.com, US and UK Government websites
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