Tariff reductions for UK automotive and aerospace sectors have taken effect following Prime Minister Sir Keir Starmer’s completion of negotiations for relief from US import duties.
UK car manufacturers exporting to America now face a reduced 10% tariff quota, down from the previous 27.5%, while aerospace companies will see a 10% levy eliminated completely.
Sir Keir described the agreement as a “historic trade deal” with the US, secured after President Donald Trump implemented import taxes as part of his “liberation day” tariffs affecting countries globally.
The Prime Minister and US President finalized the sectoral agreement during the G7 summit, though steel tariffs remain at 25% instead of being reduced to zero as initially negotiated.
Discussions continue regarding securing 0% tariffs on core UK steel products destined for US markets.
Trump’s executive order indicates the US seeks guarantees regarding UK steel supply chains intended for export, along with clarification on the “nature of ownership” of production facilities.
Sir Keir stated, “Our historic trade deal with the United States delivers for British businesses and protects UK jobs. From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy. We will always act in the national interest—backing British businesses and workers, delivering on our Plan for Change.”
Business and Trade Secretary Jonathan Reynolds indicated the deal would generate hundreds of millions in annual savings while protecting thousands of employment positions.
“We agreed this deal with the US to protect jobs and support growth in some of our most vital sectors—and today, we’re delivering on that promise for the UK’s world-class automotive and aerospace industries,” Reynolds said.
Kevin Craven, representing aerospace trade association ADS, expressed that the sector “hugely appreciated” the negotiation efforts.
Society of Motor Manufacturers and Traders chief executive Mike Hawes characterized the agreement as “good news for US customers and a huge relief for the UK automotive companies that export to this critically important market.”
Parliament will receive updates Monday regarding ethanol and US beef quotas.
The agreement includes removing a 20% tariff on US beef imports to the UK and increasing the US beef quota to 13,000 metric tons.
A 19% tariff on US ethanol imports will also be eliminated, establishing a tariff-free quota of 1.4 billion liters of American ethanol.
The bioethanol industry contends the deal creates unfair competition against heavily subsidized American products.
The UK’s largest bioethanol facility indicated last week it could cease production within weeks.
Hull-based Vivergo Fuels described government discussions as a “positive signal” while simultaneously initiating staff consultations regarding potential plant closure.
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US Cuts Tariffs on UK Cars and Planes—But Steel Industry Left Behind
Tariff reductions for UK automotive and aerospace sectors have taken effect following Prime Minister Sir Keir Starmer's completion of negotiations for relief from US import duties. UK car manufacturers exporting to America now face a reduced 10% tariff quota, down from the previous 27.5%, while aerospace companies will see a 10% levy eliminated completely. Sir Keir described the agreement as a "historic trade deal" with the US, secured after President Donald Trump implemented import taxes as part of his "liberation day" tariffs affecting countries globally. The Prime Minister and US President finalized the sectoral agreement during the G7 summit, though steel tariffs remain at 25% instead of being reduced to zero as initially negotiated. Discussions continue regarding securing 0% tariffs on core UK steel products destined for US markets. Trump's executive order indicates the US seeks guarantees regarding UK steel […]
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