A landmark UK-US trade agreement cutting tariffs on British exports of automobiles and aerospace components to the United States officially took effect Monday, marking a significant boost for British manufacturers and job preservation efforts.
Under the terms of the deal reached in May, US tariffs on UK-manufactured vehicles have been reduced from 27.5 percent to 10 percent, with an annual export cap of 100,000 vehicles. Additionally, the agreement eliminates a 10-percent tariff on a range of high-value goods, including aircraft engines and parts, enhancing the competitiveness of Britain’s aerospace sector in the lucrative US market.
“From today, British car and aerospace manufacturers will benefit from major tariff reductions when exporting to the US, saving thousands of jobs,” the UK Department of Trade announced in a statement.
Prime Minister Keir Starmer hailed the deal as a victory for British industry. “Our historic trade deal with the United States delivers for British businesses and protects UK jobs,” he said. “Our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy.”
In exchange, the United Kingdom has agreed to increase access for US agricultural exports, including ethanol and beef. While the meat imports will still need to comply with stringent UK food safety standards, the move has sparked concerns among British farmers and the chemical industry, who fear increased competition and potential regulatory challenges.
Despite the progress, key issues remain unresolved. Notably, the UK is still pushing for reduced tariffs on steel and aluminium exports, which currently face 25 percent US duties. “We will continue to go further and make progress towards zero percent tariffs on core steel products,” the UK trade department emphasized.
This deal marks a step forward in transatlantic trade relations post-Brexit and signals growing cooperation between London and Washington. While sectors such as agriculture remain cautious, the automotive and aerospace industries stand to benefit significantly, potentially safeguarding thousands of jobs and driving growth in export-oriented manufacturing.
