The US President Donald Trump has signed an executive order lowering tariffs on UK car imports, activating parts of a trade pact struck with Britain last month.
Speaking at the G7 summit in Canada, UK Prime Minister Sir Keir Starmer called it a “very important day” for both nations with the order reducing the tariff on up to 100,000 UK cars entering the US from 25% to 10%.
The deal, however, stops short of scrapping tariffs on steel, an issue UK manufacturers had hoped would be addressed. Trump hinted that details on steel and aluminium tariffs would follow stating “We’re gonna let you have that information in a little while.
The agreement, the first since Trump’s sweeping tariffs earlier this year, also removes levies on some aerospace products. UK officials say work continues toward reducing steel tariffs to zero.
Despite being welcomed by both governments, the deal is far narrower than a full free-trade agreement, which would require US congressional approval. Trump praised Starmer, saying he had achieved what others “couldn’t do in six years.”
Business Secretary Jonathan Reynolds said UK beef and ethanol quotas, part of the agreement, would be detailed to Parliament soon. The UK will now allow more US beef imports while maintaining food safety standards.
Despite the progress, opposition and leader of the Conservative Party Kemi Badenoch dismissed the deal as a “tiny tariff deal,” arguing it falls far short of the comprehensive agreement long discussed by past governments.
Mark McCarthy, Chief Revenue Officer at Basware, commented: “Trade wars and tariff uncertainty introduce volatility into the global economy. For major enterprises, especially those with complex supply chains or international footprints, this creates hesitation around IT spending. CIOs and CFOs may want to delay large IT investments, reassess strategic priorities and scrutinize every dollar of spend.
Despite economic uncertainty, companies are strategically prioritizing investment in mission-critical financial operations that offer minimal implementation risk while delivering measurable, rapid returns. Accounts Payable automation is essential for maintaining healthy supplier relationships during turbulent times when suppliers may be more sensitive to payment timing. Research shows up to 90% of businesses pay suppliers late, but automated solutions can reduce invoice processing from an average of 10 days to under four, ensuring timely payments to suppliers who may be facing their own cash flow challenges due to wider economic pressures.
Additionally, economic turbulence creates fertile ground for fraud, with over 70% of businesses falling victim to invoice or payment fraud annually. AI-powered solutions can now detect suspicious patterns and potential errors before they impact the bottom line, protecting against the rise in vendor impersonation scams and fraudulent activities that typically increase during uncertain times. These solutions also enable fast recovery of incorrect payments, providing immediate hard-dollar savings to offset rising costs in other areas of the business.
Macroeconomic headwinds don’t kill IT spending; they shift it. And the organizations who optimize their tech solutions and align their strategic priorities in the areas that create the biggest impact will be the ones that come out on top.”
