BBC | President Donald Trump has signed an executive order to reduce tariffs on UK cars being shipped to the US, which will bring into force parts of a tariff deal agreed between the two countries last month.
Speaking at the G7 summit in Canada, Prime Minister Sir Keir Starmer called the move a "very important day" for both countries.
It comes after weeks of talks to implement parts of the pact, which the UK government hopes will shield British businesses from the impact of Trump's tariffs.
But the deal includes a 10% levy on most UK goods, including cars, and did not address the expected removal of charges on steel imports.
The pact, initially agreed last month, is the first that the White House has announced since it imposed wide-ranging tariffs on various goods entering America earlier this year.
It was signed shortly before the White House said Trump would leave the summit early due to the situation in the Middle East.
Trump has raised taxes on goods entering the US, in a series of rapid-fire announcements in an attempt to encourage businesses and consumers to buy more American-made goods.
The moves had sparked financial turmoil and alarm around the world, including in the UK, where car manufacturers and steelmakers rely on the US as a key destination for exports.
Tariffs cut for cars but remain for steel
In the order Trump signed on Monday, the US said it would allow up to 100,000 cars into the US at a 10% tariff, instead of the 25% import tax imposed on all car imports earlier this year, as agreed under the terms outlined in May.
The order said the US would set up a similar system for steel and aluminium, but did not specify what it would be.
"We're gonna let you have that information in little while," the US President said when asked if steel tariffs would be axed for the UK - a major part of the original tariff pact.
The UK government said it would "continue to go further and make progress towards 0% tariffs on core steel products as agreed".
The order also agreed to remove tariffs on certain kinds of aerospace products.
Sir Keir said the deal "implements on car tariffs and aerospace", and described the agreement as a "sign of strength" between Britain and America.
In response to a question about future tariffs, Trump said the UK was "very well protected". "You know why? Because I like them," he added.