Kananaskis, Alberta, 2025-06-17
A Sweetheart trade Deal? UK and US Ink Agreement
Keir Starmer and Donald Trump finalized a UK-US trade agreement at the G7 summit. The deal covers key sectors, but steel faces continued tariff challenges.
- The UK aerospace sector gets a tariff-free pass into the US market.
- Auto industry tariffs will drop to 10% from 25%.
- Steel tariffs remain a sticking point, with concerns about Chinese ownership.
At the G7 summit in Canada,Keir Starmer and Donald Trump sealed a UK-US trade deal,marking a significant step in transatlantic economic relations. The deal grants the UK’s aerospace sector tariff-free access to the United States, a major win for British businesses.
The agreement, announced at the G7 venue in Kananaskis, Alberta, covers both the aerospace and automotive industries. The UK’s Department for Business and Trade revealed details, noting that the auto industry will see tariffs reduced to 10% from 25%.
However, the steel industry faces a diffrent reality.Though lower than the US global rate of 50% on steel and aluminum, tariffs remain at 25% for now. The two leaders are aiming for zero tariffs on core steel products.
Why the Steel Tariff Sticking Point?
- US concerns over Chinese ownership of British Steel.
- Fear that Jingye group could bypass US tariffs.
- Aim to protect the US steel industry from unfair competition.
A US executive order implementing the deal hints at potential complications. The US is seeking assurances about Jingye Group, the Chinese owners of British Steel. the US is concerned that Jingye might use British Steel to bypass US tariffs.
The deal’s finalization was a welcome moment for Downing Street, especially given Trump’s endorsement. Trump humorously misidentified the deal as being with the EU.
“I just signed it, and it’s done. And so we have our trade agreement with the European Union, and it’s a fair deal for both, and it produces a lot of jobs, a lot of income,” Trump said.
“And we have many, many other ones coming. But you see, the level of enthusiasm is very good, but the relationship that we have is fantastic.”
The US President then added, “The prime minister has done a great job.I want to just tell that to the people of the United Kingdom.He’s done a very, very good job. He’s done what other people, they’ve been talking about this deal for six years, and he’s done what they haven’t been able to do. So he’s done really a very good job.”
Trump’s Words of Support:
“The prime minister has done a great job… He’s done what other people, they’ve been talking about this deal for six years, and he’s done what they haven’t been able to do.”
Trump was characteristically warm in his praise for Starmer. “We’re very longtime partners and allies and friends, and we’ve become friends in a short period of time. He’s slightly more liberal than I am,” Trump joked.
When asked if the UK was protected from future tariffs, Trump responded, “The UK is very well protected. You know why? As I like them – that’s their ultimate protection.”
The meeting between Starmer and Trump took place just before talks at the G7 event, where Starmer was anticipated to push for fresh sanctions against Russia and to help find a resolution to the conflict between Iran and Israel.
Starmer’s Priorities at the G7:
- Push for new sanctions against Russia.
- Seek a resolution to the Iran-Israel conflict.
Downing Street declared in a separate proclamation that additional sanctions against Moscow were anticipated to be revealed at the summit, aiming to “ratchet up pressure until Russia is ready to commit to a full and unconditional ceasefire.” Further details are expected to be released on Tuesday.
understanding the United Kingdom
The new trade agreement between the UK and the US brings the “United Kingdom” into sharp focus. Given the deal’s implications for trade and international relations, it is indeed critically important to understand the composition and identity of the UK [[1]].
The United Kingdom (UK) is a sovereign country in Western Europe,often shortened to simply “Britain” [[2]]. **It’s comprised of england, Wales, Scotland, and Northern Ireland
