**Tariff Reductions on UK Cars and Steel, Trump Returns Early, US-South Korea Summit Falls Through**
On the 16th (local time), US President Donald Trump attended the Group of Seven (G7) summit and held bilateral talks with UK Prime Minister Keir Starmer, leading to a trade agreement. This agreement follows Trump’s decision in April to postpone retaliatory tariffs imposed worldwide by 90 days and marks the first trade deal since that deferral. With less than a month left until the end of the tariff postponement, President Trump has held talks with leaders of Canada, Japan, and the European Union (EU) but has yet to achieve significant results.
President Trump and Prime Minister Starmer met and signed the agreement during the G7 summit in Kananaskis, Alberta, Canada.
Trump told reporters that the agreement is “fair to both countries” and will “create many jobs and generate income.” Prime Minister Starmer noted that the accord applies tariffs on automobiles and the aerospace sector, calling it a crucial agreement.
According to Bloomberg and US political outlet Politico, the US plans to impose a 10% annual tariff on 100,000 UK-made cars starting this month, which is lower than the 25% tariff applied to cars imported from other countries.
The tariff on UK steel and aluminum will temporarily remain at 25%. However, if the UK makes efforts to meet US demands regarding supply chain security and production facility ownership, the tariff could potentially be reduced to 0% in the future. The hesitation to immediately lower the tariff is attributed to US concerns over supply chain security. According to The Guardian, the US is worried about the ownership structure of British Steel, as the management rights have been acquired by the UK government, but the legal ownership still lies with China’s Jingye Group, which is acting as a barrier to immediate tariff reductions.
Additionally, the US agreed to exempt certain segments of the UK aerospace industry from tariffs. In return, talks will pursue favorable measures for UK pharmaceuticals and raw materials, pending the results of an ongoing national security investigation. The UK, in exchange, agreed to expand the duty-free import quotas for US beef and ethanol.
Bloomberg reported on the tariff talks between the two countries, highlighting that the resolution justifies a diplomatic approach that avoids publicly criticizing President Trump. From Trump’s perspective, the concessions from the UK in agriculture represent a signal of success in the tariff war.
With the end of the tariff postponement fast approaching, world leaders took advantage of the G7 summit to seek resolution on tariff matters with President Trump. Trump held talks with Canadian Prime Minister Mark Carney, aiming for a trade agreement within 30 days, and failed to reach an agreement with Japanese Prime Minister Shigeru Ishiba due to tariff disagreements. He agreed to expedite working-level negotiations with the EU.
An anticipated US-South Korea summit between President Lee Jae-myung and President Trump was planned but fell through. Trump, who intended to attend the G7 from the 15th to the 17th, decided to return early following a state dinner, citing the situation in the Middle East.
As a result, while Trump has engaged in consecutive meetings with leaders from Canada, Japan, and the EU, no clear outline has emerged. With Trump returning early due to the Middle Eastern situation, the scheduled summits are expected to be consecutively canceled.