U.S. President Donald Trump and British Prime Minister Keir Starmer said Monday that they had signed a trade deal that will slash tariffs on U.K. auto and aerospace industry imports — but they are still discussing how to handle steel production.

The pair spoke to reporters at the Group of Seven summit in the Canadian Rockies, with Trump brandishing the pages of what he said was a long-awaited agreement. The rollout was anything but smooth, however, as Trump dropped the papers and at first said his administration had reached an agreement with the European Union when he meant the United Kingdom.

The president nonetheless insisted the pact is “a fair deal for both” and would “produce a lot of jobs, a lot of income.”

“We just signed it,” Trump said, “and it’s done.”

Starmer said it meant “a very good day for both our countries, a real sign of strength.”

Reaching an agreement is significant as Trump has threatened much of the world with steep import tariffs that have unsettled markets and raised the possibility of a global trade war.

He has since backed off on many of his proposed levies but also continued to suggest that administration officials were furiously negotiating new trade pacts with dozens of countries — even as few have actually materialized.

Trump said “the U.K. is very well protected,” from tariffs. “You know why? Because I like them.”

The signing of the deal at the G7 followed Trump and Starmer’s announcement in May that they’d reached a framework for a trade pact that would slash U.S. import taxes on British cars, steel and aluminum in return for greater access to the British market for U.S. products, including beef and ethanol.

But Monday’s agreement fully covers only British cars and aerospace materials, with more work to come on steel.

The British government said the new agreement removes U.S. tariffs on U.K. aerospace products, exempting Britain from a 10% levy the Trump White House has sought to impose on all other countries — a boost to British firms, including engine-maker Rolls-Royce.

It also sets the tax on British autos at 10% from the end of the month, down from the current 27.5%, up to a quota of 100,000 vehicles a year.

U.K. Business and Trade Secretary Jonathan Reynolds said the deal protects “jobs and livelihoods in some of our most vital sectors.” Mike Hawes, chief executive of Britain’s Society of Motor Manufacturers and Traders, said it was “great news for the U.K. automotive industry.”

But there was no final agreement to cut the tax on British steel to zero as originally foreseen — seen as vital to preserving the U.K.’s beleaguered steel industry. Britain’s steel output has fallen 80% since the late 1960s due to high costs and the rapid growth of cheaper Chinese production.

Monday’s agreement fleshes out the terms of the framework deal announced in May. That framework didn’t immediately take effect, leaving British businesses uncertain about whether the U.K. could be exposed to any surprise hikes from Trump.

British businesses, and the U.K. government, were then blindsided earlier this month when Trump doubled metals tariffs on countries around the world to 50%. He later clarified the level would remain at 25% for the U.K.

After the two leaders spoke, the White House released a statement seeking to clarify matters, saying that with respect to steel and aluminum, Commerce Secretary Howard Lutnick will “determine a quota of products that can enter the United States without being subject” to previous tariffs imposed by the Trump administration.

The British government said Monday that the plan was still for “0% tariffs on core steel products as agreed.”

Trump’s executive order authorizing the deal contained several references to security of supply chains, reflecting the U.S. administration’s concerns about China. It said the U.K. “committed to working to meet American requirements on the security of the supply chains of steel and aluminum products intended for export to the United States.”

There also was no final deal on pharmaceuticals, where “work will continue,” the U.K. said.

The deal signed Monday also confirms that American farmers can export 13,000 metric tons (29 million pounds) of beef to the U.K. each year, and vice versa — though a British ban on hormone-treated beef remains in place.

This story was originally featured on Fortune.com

© Mark Schiefelbein—AP

President Donald Trump abruptly left the Group of Seven summit Monday, departing a day early as the conflict between Israel and Iran intensified and the U.S. leader declared that Tehran should be evacuated “immediately.”

World leaders had gathered in Canada with the specific goal of helping to defuse a series of global pressure points, only to be disrupted by a showdown over Iran’s nuclear program that could escalate in dangerous and uncontrollable ways. Israel launched an aerial bombardment campaign against Iran four days ago.

At the summit, Trump warned that Tehran needs to curb its nuclear program before it’s “too late.” He said Iranian leaders would “like to talk” but they had already had 60 days to reach an agreement on their nuclear ambitions and failed to do so before the Israeli aerial assault began. “They have to make a deal,” he said.

Asked what it would take for the U.S. to get involved in the conflict militarily, Trump said Monday morning, “I don’t want to talk about that.“

So far, Israel has targeted multiple Iranian nuclear program sites but has not been able to destroy Iran’s Fordo uranium enrichment facility.

The site is buried deep underground — and to eliminate it, Israel may need the 30,000-pound (14,000-kilogram) GBU-57 Massive Ordnance Penetrator, the U.S. bunker-busting bomb that uses its weight and sheer kinetic force to reach deeply buried targets. Israel does not have the munition or the bomber needed to deliver it. The penetrator is currently delivered by the B-2 stealth bomber.

By Monday afternoon, Trump warned ominously on social media, “Everyone should immediately evacuate Tehran!” Shortly after that, Trump decided to leave the summit and skip a series of Tuesday meetings that would address the ongoing war in Ukraine and global trade issues.

As Trump posed for a picture Monday evening with the other G7 leaders, he said simply, “I have to be back, very important.”

Canadian Prime Minister Mark Carney, the host, said, “I am very grateful for the president’s presence and I fully understand.”

Crises abound

The sudden departure only heightened the drama of a world that seems on verge of several firestorms. Trump already has hit several dozen nations with severe tariffs that risk a global economic slowdown. There has been little progress on settling the wars in Ukraine and Gaza.

But in a deeper sense, Trump saw a better path in the United States taking solitary action, rather than in building a consensus with the other G7 nations of Canada, France, Germany, Italy, Japan and the United Kingdom.

British Prime Minister Keir Starmer, French President Emmanuel Macron, Italian Premier Giorgia Meloni and German Chancellor Friedrich Merz held an hourlong informal meeting soon after arriving at the summit late Sunday to discuss the widening conflict in the Mideast, Starmer’s office said.

And Merz told reporters that Germany was planning to draw up a final communique proposal on the Israel-Iran conflict that will stress that “Iran must under no circumstances be allowed to acquire nuclear weapons-capable material.”

The G7 leaders all signed a joint statement Monday night saying Iran “can never have a nuclear weapon” as they urged a “broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza.”

Trump, for his part, said Iran “is not winning this war. And they should talk and they should talk immediately before it’s too late.”

But by early Monday evening, as he planned to depart Kananaskis and the Canadian Rocky Mountains, Trump seemed willing to push back against his own supporters who believe the U.S. should embrace a more isolationist approach to world affairs. It was a sign of the heightened military, political and economic stakes in a situation evolving faster than the summit could process.

“AMERICA FIRST means many GREAT things, including the fact that, IRAN CAN NOT HAVE A NUCLEAR WEAPON. MAKE AMERICA GREAT AGAIN!!!” Trump posted on Truth Social, his social media platform.

It’s unclear how much Trump values the perspective of other members of the G7, a group he immediately criticized while meeting with Carney. The U.S. president said it was a mistake to remove Russia from the summit’s membership in 2014 and doing so had destabilized the world. He also suggested he was open to adding China to the G7.

High tension

As the news media was escorted from the summit’s opening session, Carney could be heard as he turned to Trump and referenced how the U.S. leader’s remarks about the Middle East, Russia and China had already drawn attention to the summit.

“Mr. President, I think you’ve answered a lot of questions already,” Carney said.

The German, U.K., Japanese and Italian governments had each signaled a belief that a friendly relationship with Trump this year can help keep public drama at a minimum, after the U.S. president in 2018 opposed a joint communique when the G7 summit was last held in Canada.

Going into the summit, there was no plan for a joint statement this year.

The G7 originated as a 1973 finance ministers’ meeting to address the oil crisis and evolved into a yearly summit meant to foster personal relationships among world leaders and address global problems. It briefly expanded to the G8 with Russia as a member, only for Russia to be expelled in 2014 after annexing Crimea and taking a foothold in Ukraine that preceded its aggressive 2022 invasion of that nation.

Beyond Carney and Starmer, Trump had bilateral meetings or pull-aside conversations with Merz, Japanese Prime Minister Shigeru Ishiba and European Commission President Ursula von der Leyen.

He talked with Macron about “tariffs, the situation in the Near and Middle East, and the situation in Ukraine,” according to Macron spokesperson Jean-Noël Ladois.

On Tuesday, Trump had been scheduled before his departure to meet with Mexican President Claudia Sheinbaum and Ukrainian President Volodymyr Zelenskyy. Zelenskyy said one of the topics for discussion would be a “defense package” that Ukraine is ready to purchase from the U.S. as part of the ongoing war with Russia, a package whose status might now be uncertain.

Tariff talk

The U.S. president has imposed 50% tariffs on steel and aluminum as well as 25% tariffs on autos. Trump is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period set by him would expire.

He announced with Starmer that they had signed a trade framework Monday that was previously announced in May. The trade framework included quotas to protect against some tariffs, but the 10% baseline would largely remain as the Trump administration is banking on tariff revenues to help cover the cost of its income tax cuts.

Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, through some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump’s first term.

Merz said of trade talks that “there will be no solution at this summit, but we could perhaps come closer to a solution in small steps.”

Carney’s office said after the Canadian premier met with Trump on trade that “the leaders agreed to pursue negotiations toward a deal within the coming 30 days.”

This story was originally featured on Fortune.com

© SUZANNE PLUNKETT—POOL/AFP via Getty Images