The UK-US trade deal has been signed and is “done”, US President Donald Trump has said as he met Sir Keir Starmer at the G7 summit.
The US president told reporters: “We signed it, and it’s done. It’s a fair deal for both. It’ll produce a lot of jobs, a lot of income.”
As Mr Trump and his British counterpart exited a mountain lodge in the Canadian Rockies where the summit is being held, the US president held up a physical copy of the trade agreement to show reporters.
Several leaves of paper fell from the binding, and Mr Starmer quickly bent down to pick them up, saying: “A very important document.”
Image: President Donald Trump drops papers as he meets with Britain’s Prime Minister Keir Starmer in Kananaskis, Canada. Pic: AP
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1:06
Sir Keir Starmer hastily collects the signed executive order documents from the ground and hands them back to the US president.
Sir Keirsaid the document “implements” the deal to cut tariffs on cars and aerospace, adding: “So this is a very good day for both of our countries – a real sign of strength.”
Mr Trump added that the UK was “very well protected” against any future tariffs, saying: “You know why? Because I like them”.
However, he did not say whether levies on British steel exports to the US would be set to 0%, saying “we’re gonna let you have that information in a little while”.
Image: Sir Keir Starmer picks up paper from the UK-US trade deal after Donald Trump dropped it at the G7 summit. Pic: Reuters
What exactly does trade deal being ‘done’ mean?
The government says the US “has committed” to removing tariffs (taxes on imported goods) on UK aerospace goods, such as engines and aircraft parts, which currently stand at 10%.
That is “expected to come into force by the end of the month”.
Tariffs on car imports will drop from 27.5% to 10%, the government says, which “saves car manufacturers hundreds of millions a year, and protects tens of thousands of jobs”.
The White House says there will be a quota of 100,000 cars eligible for import at that level each year.
But on steel, the story is a little more complicated.
The UK is the only country exempted from the global 50% tariff rate on steel – which means the UK rate remains at the original level of 25%.
That tariff was expected to be lifted entirely, but the government now says it will “continue to go further and make progress towards 0% tariffs on core steel products as agreed”.
The White House says the US will “promptly construct a quota at most-favoured-nation rates for steel and aluminium articles”.
Other key parts of the deal include import and export quotas for beef – and the government is keen to emphasise that “any US imports will need to meet UK food safety standards”.
There is no change to tariffs on pharmaceuticals for the moment, and the government says “work will continue to protect industry from any further tariffs imposed”.
The White House says they “committed to negotiate significantly preferential treatment outcomes”.
Mr Trump also praised Sir Keir as a “great” prime minister, adding: “We’ve been talking about this deal for six years, and he’s done what they haven’t been able to do.”
He added: “We’re very longtime partners and allies and friends and we’ve become friends in a short period of time.
“He’s slightly more liberal than me to put it mildly… but we get along.”
Sir Keir added that “we make it work”.
The US president appeared to mistakenly refer to a “trade agreement with the European Union” at one point as he stood alongside the British prime minister.
In a joint televised phone call in May, Sir Keir and Mr Trump announced the UK and US had agreed on a trade deal – but added the details were being finalised.
Ahead of the G7 summit, the prime minister said he would meet Mr Trump for “one-on-one” talks, and added the agreement “really matters for the vital sectors that are safeguarded under our deal, and we’ve got to implement that”.
As the EU’s MiCA regulation and the UK’s evolving crypto laws diverge, fund managers face a key choice: to opt for the EU’s legal certainty and passporting or the UK’s flexible, innovation-driven approach.
Sir Keir Starmer has said he gets “frustrated” with politicians who “shout and scream but do nothing” as he defended past comments about a grooming gangs inquiry.
Speaking to Sky News’s political editor Beth Rigby, the prime minister was asked if he regretted saying in January that those calling for a national probe into paedophile rings were “jumping on a far-right bandwagon” – given he has now agreed to one.
Sir Keir said he was “really clear” he was talking about the Tories, who were demanding an inquiry they never set up when they were in government.
He said: “I was calling out those politicians.
“I am frustrated with politics when people shout and scream a lot and do nothing when they’ve got the opportunity to do it. It’s one of the worst aspects of politics, in my view.”
Sir Keir also said there “must be accountability” for authorities who “shied away” from talking about the ethnicity of perpetrators for fear of being branded racist, as exposed in a report by Baroness Casey published on Monday.
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Asked if he is happy for “social workers, policemen and people that failed” to be held accountable, the prime minister said: “Where the inquiry uncovers failure or wrongdoing, then there should absolutely be accountability.
“That is amongst the purposes of an inquiry, and it’s a statutory inquiry… which will therefore mean there is power to compel evidence of witnesses because it’s important that it is comprehensive and important that it gets to every single issue. And as part of that process, there’s accountability for individuals who did wrong.”
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4:18
Data dismissed ‘Asian grooming gangs’
Baroness Casey was asked to produce an audit of sexual abuse carried out by grooming gangs in England and Wales in January, when comments by tech billionaire Elon Muskbrought the scandal back into the spotlight.
The government’s position has changed following Baroness Casey’s audit, which recommended an inquiry.
Her report found that ethnicity data is not recorded for two-thirds of grooming gang perpetrators.
However at a local level in three police forces – Greater Manchester, South Yorkshire and West Yorkshire – “there has been a disproportionality of group-based child sexual exploitation offending by men of Asian ethnicity”.
The cross bench peer said instead of looking into whether ethnicity or cultural factors played a part, authorities “avoided the topic altogether for fear of appearing racist”, and this warranted further investigation.