From Monday (30 June), British car and aerospace manufacturers will benefit from major tariff reductions when exporting to the US, as the landmark UK-US trade deal comes into effect.
The UK is the only country to have secured this deal with the US, reducing car export tariffs from 27.5% to 10%. It is expected to save manufacturers hundreds of millions each year and protect hundreds of thousands of jobs.
At the same time, the aerospace sector has seen the removal of 10% tariffs on goods such as engines and aircraft parts, helping make companies such as Rolls-Royce more competitive and allowing them to continue to be at the cutting edge of innovation.
This deal is one of many international agreements the UK has secured recently to boost our economy, including a trade deal with India which will add £4.8 billion to the economy and £2.2 billion in wages every year, and a renewed EU deal which will add nearly £9 billion to the economy by 2040 on SPS and emissions measures alone.
“We agreed this deal with the US to protect jobs and support growth in some of our most vital sectors – and today, we’re delivering on that promise for the UK’s world-class automotive and aerospace industries,” said Business and Trade Secretary Jonathan Reynolds.
British car manufacturers can now export to the US at a significantly reduced 10% tariff rate – down from 27.5% – and aerospace goods will see 10% tariffs removed, saving sectors hundreds of millions each year and safeguarding thousands of jobs, he said.
“This is a clear example of our Plan for Change in action: cutting costs for businesses, speeding up delivery of trade benefits, and helping UK industries thrive in a challenging global environment.”
Prime Minister Keir Starmer said the deal with the United States will deliver for British businesses and protect UK jobs. “From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy,” he said.
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