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The United States and United Kingdom on Monday finalized terms to carry out the trade deal framework, the two countries announced in early May.
The agreement institutes several of the provisions outlined in the initial framework, per an order signed by President Donald Trump at the G7 Summit in Kananaskis, Alberta.
The U.S. will levy a combined 10% tariff for up to 100,000 car imports annually under the deal, per the order. U.K. automobiles would be subject to a 25% tariff after reaching the quota. The order also lowers tariffs on U.K. auto parts used in cars from the country from 25% to 10%.
The agreement further exempts several U.K. aerospace products, including civil aircraft engines, from the Trump administration’s reciprocal tariffs and steel and aluminum duties.
Although the agreement enacts several measures, there remain other particulars to be ironed out. As part of the agreement, the Commerce Secretary will determine and establish tariff-rate quotas for steel and aluminum products from the U.K. The U.S. began implementing 50% tariffs on such imports earlier this month.
In addition, Trump said the two countries are “committed to negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients” following the outcome of a Section 232 investigation initiated in April.
All provisions will go into effect seven days after the order is published in the Federal Register, per the order.
