U.S. and U.K. Unveil New Trade Deal at G-7 Summit

The United States and the United Kingdom said Monday they have reached a trade deal after previously agreeing to a framework last month.

“The deal includes billions of dollars of increased market access for American exports, especially for beef, ethanol, and certain other American agricultural exports,” according to text of the deal posted to X .

The U.K. has agreed to reduce non-tariff barriers that “unfairly discriminate against American products” it continues.

President Donald Trump and U.K. Prime Minister Keir Starmer presented the signed deal at the Group of Seven meeting in Alberta, Canada.

Trump called it a “ fair deal ” for both countries and said it would produce “a lot of jobs, a lot of income.” He added that “we have many other ones coming.”

Starmer added, “This now implements on car tariffs and aerospace, a really important agreement.”

Under the terms of the deal , the first 100,000 vehicles imported to the U.S. from the U.K. would be subject to a 10% tariff. Automotive parts imported to the U.S. will be tariffed at a 10% rate. The U.K. will also get most-favored-nation tariff rates for steel and aluminum imports if it meets certain requirements.

Other aspects are still be ironed out. The two countries agreed to negotiate “significantly preferential treatment outcomes” on pharmaceuticals from the U.K. and to negotiate trade terms for certain other goods subject to Section 232 tariffs .

Trump Says He’s a ‘Tariff Person’ as G-7 Leaders Meet

Different concepts on tariffs are holding up a deal with Canada, President Donald Trump told reporters Monday, while standing next to Canadian Prime Minister Mark Carney ahead of a meeting between the two leaders.

“I’m a tariff person. I’ve always been a tariff person,” Trump added. “It’s simple, it’s easy, it’s precise, and it just goes very quickly. I think Mark has a more complex idea but also very good. So we’re going to look at both and come out with something.”

The U.S. hasn’t announced a trade deal with Canada yet, although Carney visited the White House in May shortly after his Liberal Party won Canada’s federal election in late April. While meeting in the Oval Office, Trump reiterated his desire for Canada to become the U.S.’s 51st state , and Carney said Canada wasn’t for sale.

Both the U.S. and Canada have imposed tariffs on each other’s goods. The U.S. has tariffs on imported Canadian steel, aluminum, and energy, and Canada has tariffs on imported U.S. cars, among other product levies. Goods covered by the United States-Mexico-Canada Agreement are exempt.

Trump’s comments came during the annual Group of Seven meeting held this year in Alberta, Canada. The G-7 is a group of advanced economies comprised of the U.S., Canada, France, Germany, Italy, Japan, and the United Kingdom. The European Union also attends. It was known as the Group of Eight until 2014, when Russia was removed after annexing Crimea from Ukraine.

Some non-G-7 countries are also represented this year, including Mexico, India, Australia, South Africa, Brazil, South Korea, and Ukraine.

The U.S.’s relationship with its allies has been strained since Trump announced his so-called “reciprocal tariffs” on April 2 on imported goods from most nations in an effort to correct trade imbalances and spur U.S. manufacturing.

Most of those levies are paused until July 9 while trade deals are negotiated. To date, only one such deal has been announced, and that is with the United Kingdom . The U.S. and China agreed to a framework for a deal earlier this month, but have not announced a formal agreement.

Write to Anita Hamilton at anita.hamilton@barrons.com