Trump Seals UK Trade Deal at G7 Amid Rocky EU Talks

Advanced | June 18, 2025

✨ Read the article aloud on your own or repeat each paragraph after your tutor.

G7 Backdrop for Trade Action

President Trump Uses G7 Summit for Trade Focus

President Donald Trump recently attended the G7 summit in Canada, using the high-profile gathering as a stage for advancing his administration’s trade agenda. While summits like these often focus on broad global issues, Trump G7 trade deal with UK and EU talks was clearly high on President Trump’s list, setting the tone for several bilateral meetings on the sidelines.

A Major Bilateral Achievement with the UK

A significant outcome from the summit was the formal signing and implementation of a trade deal with the United Kingdom. This agreement, which had been verbally agreed upon in May, was finalized alongside UK Prime Minister Keir Starmer. It was presented as a sign of strength between the two nations.

Tariffs Down for Some, Still Up for Others

Key Changes to Automotive and Aerospace Tariffs

The UK-US deal includes key provisions aimed at reducing tariffs. Notably, it cuts the US tariff on up to 100,000 British-made cars annually from a higher rate (either 25% or 27.5% depending on the source) down to 10%.

US Gains Market Access for Beef and Ethanol

Additionally, tariffs on UK aerospace products, like jet engines, will be eliminated entirely. In return, the UK has agreed to allow more imports of US beef and ethanol. While hailed as important, some critics argue it’s a “tiny tariff deal” compared to a full free-trade agreement, and issues around steel and aluminum tariffs remain partially unresolved.

EU Negotiations Still Hitting Roadblocks

Progress Lags Behind UK Talks

In contrast to the progress with the UK, trade talks between the US and the European Union appear to be moving at a much slower pace, encountering significant roadblocks. President Trump met with European Commission President Ursula von der Leyen at the G7, and they reportedly instructed their teams to accelerate negotiations.

Sticking Points and Extended Deadlines

However, President Trump publicly stated that he didn’t feel the EU was offering a “fair deal” yet. These talks have been fraught with tension, particularly due to US threats to dramatically increase tariffs on European goods, potentially from a 10% baseline to 50%, if an agreement isn’t reached. The deadline for these discussions was recently extended to July 9th, offering a bit more time but keeping the pressure on.

Different Approaches, Different Outcomes

Comparing UK and EU Trade Strategies in Trump G7 Trade Deal with UK and EU Talks

The differing outcomes with the UK and the EU seem to highlight varying negotiation strategies and sticking points. While the UK accepted a deal that maintains a baseline US tariff on many goods, the EU has reportedly rejected this approach, preferring a “zero-for-zero” deal on industrial tariffs.

Outlook for US-EU Trade Relations

The path forward for US-EU trade relations remains uncertain, dependent on whether the accelerated talks can bridge the gap before the looming deadline.

Vocabulary

Summit (noun): A formal meeting between leaders of different countries.
*Example: “The G7 summit brought together leaders from major economies.”
Advancing (verb): Making progress or moving forward in a process.
*Example: “They are focused on advancing trade discussions.”
Agenda (noun): A list of items to be discussed or acted upon.
*Example: “Trade was high on the president’s agenda for the meeting.”
Bilateral (adjective): Involving two groups or countries.
*Example: “They held a bilateral meeting to discuss the trade agreement.”
Formalized (verb): Made something official or formal.
*Example: “The verbal agreement was formalized with a signing ceremony.”
Implementation (noun): The process of putting a plan or agreement into effect.
*Example: “The deal moves now to the implementation stage.”
Provisions (noun): Conditions or terms in an agreement.
*Example: “The agreement includes provisions for tariff reductions.”
Reducing (verb): Making something smaller or less in amount, degree, or size.
*Example: “The goal of the deal is reducing trade barriers.”
Roadblocks (noun): Things that stop or prevent progress.
*Example: “Negotiations hit roadblocks over key disagreements.”
Accelerate (verb): To happen or make something happen sooner or faster.
*Example: “They instructed their teams to accelerate their work.”

Discussion Questions (About the Article)

What was a major trade accomplishment for President Trump at the G7 summit?
How did the trade deal with the UK change tariffs on cars and aerospace products?
Why are trade talks between the US and the EU described as “stalled”?
What is the looming deadline mentioned for the US-EU trade negotiations?
How does the EU’s reported stance on tariffs differ from the UK’s approach in their deal with the US?

Discussion Questions (About the Topic)

What are the potential benefits and drawbacks of countries using tariffs in trade negotiations?
How do you think trade deals like the one between the US and UK affect businesses in those countries?
Why do you think negotiating trade agreements with large blocs like the EU can be more complex than with individual countries?
What role do political relationships play in international trade negotiations?
Should trade agreements prioritize lower tariffs or protecting domestic industries?

Related Idiom

At a standstill
Meaning: Not moving forward; stopped.
Example: They extended the deadlines because the trade talks were at a standstill.

📢 Want more practical tips to improve your English while learning about today’s important topics? Sign up for the All About English Mastery Newsletter!

Follow our YouTube Channel @All_About_English for more great insights and tips.

This article was inspired by: Yahoo Finance, June 18, 2025.