U.S.-UK Tariff Deal Kicks Off, Reduces Car Tariffs
(MENAFN) A new agreement between the US and the UK, aimed at slashing tariffs on key imports and exports, has officially taken effect, granting British car manufacturers enhanced access to the US market, the world’s largest consumer base.
The deal allows UK automakers to export up to 100,000 vehicles annually to the US, now subject to a reduced 10% tariff—far lower than the previous rate of 27.5%. This marks a significant competitive edge over international car makers. In addition, tariffs on UK aerospace exports will be eliminated entirely, further boosting the UK’s manufacturing sector.
In exchange, the UK has agreed to lift tariffs on US beef and ethanol imports. However, the British bioethanol industry has voiced concerns, warning that the move will put them at a severe disadvantage.
Despite these gains, UK steel and aluminium exports still face a 25% tariff. If the two nations do not reach a resolution by the July 9th deadline, this rate could double to 50%.
The agreement, which was finalized during the G7 summit earlier this month, comes as a response to the sweeping tariffs imposed by US President Donald Trump in April, which caused significant disruption in global markets.
UK Prime Minister Sir Keir Starmer described the agreement as a "historic deal" that would protect vital industries critical to the UK’s economy.
According to Business and Trade Secretary Jonathan Reynolds, the tariff reductions will save UK sectors “hundreds of millions each year” and secure “thousands of jobs.” However, uncertainties remain regarding the status of steel and aluminium tariffs, as they continue to be subject to the ongoing negotiations.
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