US President Donald Trump has signed an executive order directing federal agencies to implement the US-UK trade agreement, which was unveiled in May. The deal dramatically reduces tariffs on British exports and expands the US access to key UK markets. The executive order, signed just hours after a brief meeting with UK Prime Minister Keir Starmer on the sidelines of the G7 summit in Canada, is expected to “operationalize” the agreement. Central to the deal is reducing the US automotive tariff from 27.5% to 10% for the first 100,000 UK-manufactured vehicles shipped to the American market annually. “This is a very good day for both of our countries, a real sign of strength,” Starmer said, confirming the new terms will immediately take effect. The agreement also shields British exports of jet engines and other aerospace components from US tariffs linked to a national security investigation Trump had launched into the aerospace sector. That exemption hinges on UK commitments to exclude China from sensitive defense and technology supply chains. Tariff relief spurs industry divides as UK bioethanol, steel sectors raise alarm While industries such as automotive and aerospace are celebrating the deal, the agreement has provoked controversy in other sectors. The UK has granted the US a tariff-free quota of 1.4 billion liters of ethanol, equivalent to the country’s entire annual demand. UK bioethanol producers have warned the decision threatens the viability of domestic production. Britain also agreed to enhance market access for American beef and industrial goods in exchange for the US tariff cuts. Negotiations regarding the treatment of UK steel and aluminum are still ongoing. The trade deal promises to eliminate US tariffs on these exports, but technical and legal hurdles have delayed implementation. British officials say they are still working with the US to finalize a quota system that would allow UK steelmakers to sidestep the 25% global steel tariff imposed by Trump under national security provisions. The situation is further complicated by US rules that require steel to be “melted and poured” in the country of origin to qualify for tariff relief—criteria that much of Britain’s steel, which is reprocessed from imported material, does not meet. As negotiations continue, Trump has offered the UK a temporary exemption from his newly doubled global steel tariff of 50%, giving time to resolve the issues. Starmer pushes rapid rollout as UK industries react to landmark US trade deal Under mounting pressure at home to secure relief for industries battered by tariffs, Starmer emphasized the importance of swift implementation. The UK automobile sector, in particular, has applauded the car tariff reduction, calling it a much-needed boost for exports amid economic uncertainty. Despite objections from the UK’s bioethanol industry, the trade pact marks one of the most comprehensive bilateral deals between the two nations in recent years and a shift in transatlantic economic relations. “We just signed it, and it’s done,” Trump told reporters, adding that the agreement reflects a new chapter in US-UK cooperation. KEY Difference Wire helps crypto brands break through and dominate headlines fast
