Name: Donald Trump signs order confirming parts of US-UK tariff deal | BBC News
Uploaded: 2025-06-17T15:12:55.000Z
Duration: 6 min 26 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

The deal has been signed off at the G7 between the US and UK.

Let's go to Sally for the details, Sally.

Yeah, let's tell you what's been going on, because the US and the UK, as we've just mentioned, has signed a tariff deal, which will see lower charges for certain products for both countries.

Speaking at the G7 summit in Alberta, Prime Minister Sir Keir Starmer called the move a very important day for both sides.

It comes after weeks of talks to implement parts of the pact, which the UK government hopes will shield British businesses from the impact of Donald Trump's tariffs.

So the signed deal includes a 10% levy on most UK goods.

However, it did not address the expected removal of charges on UK steel exports to the US.

In the order that Trump signed on Monday, the US said it would allow up to 100,000 cars into the US at the 10% tariff.

And this is a big drop from the 27.5% American tax imposed on all imports of cars earlier this year.

Both leaders seem pleased with the agreement.

But you see, the level of enthusiasm is very good.

But the relationship that we have is fantastic.

This now implements on car tariffs and aerospace a really important agreement.

And so this is a very good day for both of our countries, a real sign of strength.

Well, I talked to Kyle Handley, who's a professor of economics at the University of California, San Diego.

I'm not as excited about the deal as they are.

So this is not much of a deal, I think, from either the US or the United Kingdom perspective.

Donald Trump raised tariffs quite a bit on UK imports and then got the UK to reduce some barriers on some of its own products.

But most of those higher tariffs are still in place.

And now we are basically rationing how many cars can be exported and imported from the UK.

And I don't think that's going to work out very well for either side.

I mean, it's just going to mean cars are more expensive and we're telling people how much they're allowed to sell.

Well, when I looked at the data for last year, for example, to see how many cars Jaguar Land Rover sold to the US, it was 100,000.

And actually the School of Motor Manufacturers and Traders says that for the UK as a whole, it was just over 100,000 cars sold into the US from the UK in 2024.

So it would seem the cap is sitting at kind of the right level, but it doesn't give room for expansion, does it really, in terms of the lower tariffs?

Yeah, I mean, I think that's what worries me about it is that they've set this number now based on last year's data, and it's the government on both sides are essentially choosing the quantity.

And then they're going to have to decide how do we allocate that quota to all of our UK manufacturers and who gets to export under the quota and who doesn't.

And they may worry that they're going to hit that limit some years and some years they won't.

And that means that it's going to be difficult to know what your tariff liability really is.

So it creates, you know, I think a more complex, less simple system.

But if you're looking to buy a Mini or a Bentley or a Jaguar car in the US, a 10% hit is a lot better than nearly 30%, which is where we could have been.

And also it's not just cars, it's the aerospace sector, it's other sectors that will really benefit from this.

I mean, the tariffs are going to be lower than they otherwise would have been.

But if none of this had been started in the first place back in April by the Trump administration, we'd all be paying, you know, much lower tariffs.

What do people think on this side of the pond?

Will Walker-Arnott is Director of Private Clients at Charles Stanley.

We're in a better position than we were post-liberation, David.

Actually, from the start of the year, I think the UK economy is probably going to suffer from these changes.

I think the automotive sector will be pleased.

They were putting pressure on Kyostarma to get a deal across the line since this deal was first announced in May.

And it is going to be of benefit to them.

Effectively, it is a cars for agriculture deal.

And we export, I think, about £9 billion worth of cars to the US each year.

And so they'll be pleased with this reduction in tariffs.

And also, Will, we need to take into account, I mean, at the G7, a lot of global leaders gathered, all of whom want to cut a deal with President Trump.

Ursula von der Leyen had one-on-one conversations, and she said they've made progress for the EU.

As Mark Carney did, he was first in line as host of G7 with a commitment from President Trump to agree something for Canada within 30 days, whereas for Kyostarma, it was signed and sealed then and there.

Yeah, I mean, it is a coup for the UK government.

And it's great for the automotive sector and also the aerospace sector.

What was not included in the deal is worth also pointing out.

I think you alluded to earlier, they haven't managed to reach an agreement on steel yet because there are some supply chain technicalities there.

We also haven't got any more detail on a deal in terms of the drug industry and the pharmaceutical industry.

So we're waiting to hear a little bit more there.

Other countries will be desperate to get some sort of memorandum of understanding because Liberation Day, well, that's the sort of 90-day moratorium is coming to an end.

They got till July the 9th to try and get some agreements with Trump.

And so they'll be hoping to get some sort of memorandum of understandings ahead of that, which we think is probably likely.