UK-US Trade Deal: Reduced Tariff on UK-made Vehicles Announced
President Donald Trump has announced that UK-made vehicles imported into the US will be hit with a reduced tariff of 10%, but only for the first 100,000 cars exported. Prime Minister Keir Starmer has stated that this agreement is not yet final, indicating that there may be room for negotiation.
After more than a month of negotiations between UK ministers and US officials, this deal comes as a relief following President Trump’s initial plan to impose a 25% tariff on new cars imported into the US. The negotiations were prompted by the looming start date of April 1 for the levies, but a 90-day reprieve allowed for discussions to take place.
While details on the new deal are still scarce, it has been confirmed that the 10% tariff will apply to the first 100,000 cars exported, with any additional vehicles facing the higher 25% tariff. This marks a significant increase from the previous 2.5% tariff that was in place before Trump’s announcement in March.
Starmer has hinted that there may be potential to increase the quota of 100,000 cars, offering hope for further negotiations. Last year, the UK exported around 400,000 cars to the US, making it the second largest export market for the British car industry after the EU.
Starmer has praised the reduction in tariff, calling it a “huge and important” development. However, details on the proposed 25% tariff on car parts have not yet been disclosed.
In addition to the trade deal on vehicles, agreements have also been reached on food, chemicals, machinery, and industry. Tariffs on steel and aluminum have been reduced to 0%. The UK is the first nation to secure a deal with the US following Trump’s tariff announcement, with China expected to be next in line.
President Trump hailed the trade deal as a “breakthrough,” emphasizing the close relationship between the two nations. He highlighted the removal of unfair tariffs that previously disadvantaged the US in trade with the UK. Starmer echoed Trump’s sentiments, describing the agreement as a historic moment that will boost trade between the two countries.
While final details are still being ironed out, both leaders expressed optimism about the future of UK-US trade relations. Stay tuned for more updates on this significant development in the global trade landscape.
