Tariff Relief for UK Cars and Aircraft in New US Trade Agreement

US–UK Trade Deal Slashes Car and Aerospace Tariffs, Steel Talks Ongoing

The United States and United Kingdom have finalized a major trade agreement aimed at strengthening economic ties and enhancing supply chain security. Announced at the G7 summit in Alberta, the deal marks a significant step forward in transatlantic trade cooperation.

Under the agreement, tariffs on British-made cars entering the U.S. will drop from 27.5% to 10% for up to 100,000 vehicles annually. The aerospace sector also gains relief, with UK exports like Rolls-Royce engines exempted from U.S. national-security tariffs.

In return, the UK has granted the U.S. access to its beef and ethanol markets, offering quotas while maintaining existing food safety standards. The pact also outlines commitments to boost collaboration in advanced technologies, including biotechnology and quantum computing.

However, negotiations continue over tariffs on steel and aluminum. The U.S. has delayed a final decision, pending further discussions on quotas and rules of origin. Concerns remain about supply chain vulnerabilities, particularly regarding Chinese-owned companies involved in UK steel production.

While the automotive and aerospace provisions are expected to take effect by the end of June, other sectors such as pharmaceuticals and metals remain under active negotiation. The deal is being hailed as a milestone in transatlantic trade and a strategic move to reduce reliance on adversarial markets.