Tariff relief for British cars; US & UK sign new trade deal

The United States went on to say the 10% reciprocal tariff remains in effect.

Just days after signing an FTA agreement with India, the United Kingdom has struck a new trade deal with the United States. This deal brings a lot to celebrate for British carmakers.

Under the terms of the agreement, the first 100,000 vehicles imported into the United States by UK automakers each year would be subject to a 10% tariff. After that point, the tariff would increase to 25%.

While British carmakers, including Jaguar Land Rover, Mini, Rolls-Royce, Bentley, McLaren, and others like Lotus, collectively exceed the 100,000-unit threshold, it is interesting to note that not all of these vehicles are built in the UK. BBC reports that vehicle exports to the U.S. totalled 100,000 units in 2024, valued at around $12 billion.

The United States went on to say the 10% reciprocal tariff remains in effect, but there will be a “new trading union for steel and aluminium.” The Prime Minister’s office said these tariffs have gone from 25% to 0%, meaning UK steelmakers can carry on exporting to the US.

The deal has been billed as a “historic agreement” that will “slash tariffs" for UK carmakers, steelworks, and farmers – protecting jobs and providing stability for exporters.” The government went on to say car export tariffs will be reduced from 27.5% to 10%, which will save “hundreds of millions a year for Jaguar Land Rover alone.”

Source: Carscoops