President Donald Trump has signed an executive order activating key parts of a tariff agreement between the United States and the United Kingdom. The deal, originally agreed last month, reduces some trade barriers but still imposes tariffs on many goods.
Under the order, up to 100,000 UK-made vehicles can enter the US with a 10% import duty. This is a reduction from the 25% tariff introduced earlier this year. However, most other British exports will still face a 10% charge.
Steel and Aluminium Unresolved
Although the deal mentions a new system for steel and aluminium imports, no details have been provided yet. The current 25% tariffs remain in place. Trump said more information would be released later.
The UK government is pushing to eliminate these tariffs before 9 July. If no agreement is reached by then, steel tariffs could double to 50%.
The executive order also lifts certain tariffs on aerospace goods, offering some relief to UK manufacturers in that sector.
Ethanol and Beef Concessions
As part of the deal, the UK will allow 1.4 billion litres of US ethanol to enter the country duty-free. Previously, a 19% tariff applied.
In response, ABF Sugar — owner of Britain’s largest bioethanol plant — warned of possible job losses if domestic producers aren’t protected. The company has set a deadline of 25 June to secure government support.
The UK has also agreed to remove a 20% tariff on US beef and raise the import quota to 13,000 tonnes. Ministers insist that food safety standards will remain unchanged.
Mixed Reaction from Industry
Mike Hawes, chief of the Society of Motor Manufacturers and Traders, welcomed the car tariff cut, saying it offers a “competitive edge” over EU rivals still subject to higher duties.
Gareth Stace of UK Steel urged the government to clarify details on import quotas and origin rules, especially the “melted and poured” requirement affecting eligibility.
Though praised by UK leaders as a sign of strong ties, the agreement is not a comprehensive free-trade deal. Trump cannot sign such deals without US congressional approval.
Critics in the UK have dismissed the pact as too narrow. Conservative leader Kemi Badenoch called it a “tiny tariff deal,” while the Liberal Democrats demanded full disclosure of its impact on British farmers and the steel industry.