US-UK Auto Tariff Cut Comes Into Effect But No Progress On Steel
James WhitmanUK car manufacturers can export to the US under a 10% tariff starting Monday, a reduction from the 25% rate imposed by Donald Trump on other countries, as the first elements of an economic agreement between the US president and Prime Minister Keir Starmer come into effect.
UK car manufacturers can export to the US under a 10% tariff starting Monday, a reduction from the 25% rate imposed by Donald Trump on other countries, as the first elements of an economic agreement between the US president and Prime Minister Keir Starmer come into effect.
British aerospace companies like Rolls Royce Holdings plc also saw 10% tariffs on goods including engines and aircraft parts slashed to zero as of 5:01 a.m. London time. However, there still remained no sign of progress toward lowering levies on the UK’s beleaguered steel industry, which remain at 25% despite Britain previously announcing an agreement to reduce them to zero.
“From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy,” Starmer said in a statement.
The UK’s business and trade department said Britain was the only country to have secured such a deal with Trump, adding that it would save thousands of jobs.
The new 10% US tariff on British-made cars will apply to an annual quota of 100,000 vehicles, benefiting companies such as Jaguar Land Rover compared with rivals from other nations, although the reduced rate is above the level enjoyed before Trump’s return to office.
While the UK is the only country to be exempted from the global 50% tariff applied by the US to steel, negotiations to remove the 25% levy are proving difficult with issues over ownership and product origin. The failure to implement a zero-tariff deal on steel will serve as a warning to other countries negotiating their own tariff reduction deals with Trump.
The UK will continue to talk to the US about making progress toward zero tariffs on steel as agreed, the business department said, without specifying when it expected that to happen.
