Shares in jet engine maker Rolls-Royce Holdings PLC (LSE:RR.) fell on Tuesday despite news that its exports to the US will no longer be hit with tariffs, after Donald Trump signed an executive order for a UK trade deal.
This news was rather overshadowed for financial markets by re-escalating worries about the Middle East, not helped by the US President calling for the evacuation of Tehran as fighting continued between Iran and Israel.
At a meeting of G7 leaders in Alberta, Canada, Trump confirmed the deal first outlined in May was now "done" and later he and UK Prime Minister Keir Starmer were pictured showing off the new deal documents.
The deal means that Britain's aerospace sector will face zero US tariffs, while auto exports face 10% tariffs rather than the US's 25% global tariff, and the steel industry faces 25% tariffs compared to the 50% global levy on steel and aluminium.
Rolls-Royce shares fell 1.2%, though are up 10% since the deal was first announced in mid-May, while fellow aerospace supplier Melrose Industries PLC (LSE:MRO, OTC:MLSPF) saw its shares dip 0.5% in morning trade.
Trump said steel tariffs were "still a work in progress".
The UK's Department for Business and Trade said the two leaders had pledged to "make progress towards 0% tariffs on core steel products as agreed".
Asked about future tariffs, Trump said: “The UK is very well protected. You know why? Because I like them. The prime minister has done a really good job. He has done what other people have been talking about for six years and he has done it."