The President of the United States (U.S.) Donald Trump has reached a trade deal with the UK after meeting with Prime Minister Kier Starmer that will see tariffs on British cars fall to 10%.
The two leaders met last week and announced a landmark deal which will lower Trump’s worldwide tariff rates for UK steel and British car makers.
As part of the deal, U.S. tariffs on automotives will be slashed from 27.5% to 10% applying to a quota of 100,000 UK cars, as well as steel and aluminium taxes falling to zero.
Starmer’s government claimed this will save “hundreds of millions a year for Jaguar Land Rover alone” and “thousands of jobs have been saved”.
Adrian Mardell, Chief Executive Officer, JLR said:
“The car industry is vital to the UK’s economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports.”
U.S. Commerce Secretary, Howard Lutnick, said the 10% basic tariff rate would still apply.
Whilst the UK has scored in lowering tariffs for parts of its economy, other nations are still advocating for cuts to their own tariff rates.
China’s combined 145% tariff rate has been temporarily lowered after the U.S. and Chinas agreed to a 90-day truce on each other’s import taxes.
After Trump announced his tariff plan, China retaliated with a 125% tax duty on imported U.S. goods.
Mexico and Canada’s 25% tariff on most goods imported in the U.S. still remains in place.
Keep up-to-date with the latest mobility news by subscribing to MOVEMNT’s free newsletter
Also in the news:
The charging point operator market: A roadmap to success in the evolving electric vehicle landscape
Webfleet and VEV announce strategic partnership to optimise fleet electrification
CATL is said to be considering two new factory locations in Mexico
Tesla pilots open access to Supercharger Network in the Netherlands