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Business -Reporter
President Donald Trump has signed an order to reduce tariffs to send cars to the UK in the United States, which will lead to part of the tariff transaction agreed between the two countries last month.
Speaking at the G7 summit in Canada, Prime Minister Sir Kire Starmer called this step a “very important day” for both countries.
This happens in a few weeks of negotiations on the implementation of the pact, which the UK government hopes to protect the British business from the effects of Trump’s tariffs.
But the transaction includes 10% collection in most goods in the UK, including cars, and does not affect the expected removal of steel import payments.
The pact, which originally agreed last month, is the first to announce the White House, as it imposed wide tariffs on various goods that are part of America earlier this year.
It was signed shortly before the White House said Trump would leave the summit early from the situation in the Middle East.
Trump has collected taxes on goods coming to the United States in a number of rapid embossing in trying to encourage businesses and consumers to buy more US products.
These steps have caused financial upheaval and anxiety worldwide, including in the UK, where car manufacturers and steel manufacturers expect the US as a key place for export.
In the order that Trump signed on Monday, the United States said it would allow up to 100,000 cars in the US for 10% tariff, not 25% of import tax imposed on all vehicles earlier this year, as it was set out in May.
The order states that the United States will create a similar system for the steel and aluminum, but did not indicate that it would be.
“We will allow you to get this information in little time,” the US president said if the steel tariffs for the UK will be the main part of the original tariff pact.
The UK government said “it will continue to go further and make progress against 0% tariffs for major steel products as it was agreed.”
The order also agreed to delete tariffs for certain types of aerospace products.
Sir Keir said the transaction “sells tariffs to the car and the aerospace space” and described the agreement as a “sign” between Britain and America.
In response to a question about the future tariffs, Trump said the UK was “very well protected”. “You know why? Because I like them,” he added.
The UK-UK tariff transaction will come into force seven days after the official publication.
Mike Haws, CEO of the Movement and Traders Society, provided by car manufacturers in the UK, said the signed agreement would allow “many manufacturers to restore supplies that seek supply.”
“We expect to see full information about the deal and how it will be intended, but it will be a great assurance for those who work in the sector and strengthen the trust of our important US customers,” he added.
Business and Trade Secretary Jonathan Reynolds said the announcement was “the result of the work that took place at the pace of both governments to reduce the burden on business in the UK.”
“We will update the parliament on the implementation of quotas on the US and ethanol, which is part of our commitment to the US as part of this transaction,” he added.
Exports of beef to the United States to the UK historically a 20% tariff within 1000 metric tons. The UK agreed to disrupt this tariff and raise the quota up to 13,000 metric tons, according to the conditions that were divided last month.
But the UK government has insisted that there would be no food standards weakening, and that any import of beef in the United States to meet food safety requirements.
Ministers welcomed the US deals, along with trade transactions with the European Union and India.
But the US Agreement is much more limited than a full trade transaction, which has long been discussed on Downing Street. The volume of what was signed on Monday was also more limited than the general transaction conditions as outlined last month.
Earlier, Trump announced that the tariff pact was a “main trade transaction”, but that’s not the case. The US president has no authority to sign free trade agreements without the approval of Congress.
Trump said Sir Kire was doing “what other people … failed to do” when providing such a deal from the US.
“He did what other people – they were talking about this deal for six years … And he did what they could not do.”
The Pact has criticized opposition parties in the UK. The leader of the Conservative Party Kemi Badenok called it a “tiny tariff deal”.