US tariff relief for UK carmakers and aerospace comes into force
Car manufacturers exporting to the US will face a 10% tariff quota, down from 27.5%, while the aerospace sector will see a 10% levy removed entirely.
Sir Keir hailed the 'historic trade deal' with the US, clinched after Donald Trump imposed the import taxes as part of his 'liberation day' tariffs on countries across the world.
US President Donald Trump (left) and Prime Minister Sir Keir Starmer speaking to the media at the G7 summit in Kananaskis, Alberta, Canada (Stefan Rousseau/PA)
The Prime Minister and US president finalised the deal for those sectors at the G7 summit, but levies on steel have been left standing at 25% rather than falling to zero as originally agreed.
Talks are ongoing to secure 0% tariffs on core steel products from the UK.
The executive order signed by Mr Trump suggests the US wants assurances on the supply chains for UK steel intended for export, as well as on the 'nature of ownership' of production facilities.
Sir Keir said: 'Our historic trade deal with the United States delivers for British businesses and protects UK jobs.
'From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy.
'We will always act in the national interest – backing British businesses and workers, delivering on our Plan for Change.'
Business and Trade Secretary Jonathan Reynolds said the deal would save hundreds of millions each year and safeguard thousands of jobs.
'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.'
Kevin Craven, head of aerospace trade association ADS, said the sector 'hugely appreciated' the efforts to reach a deal.
Society of Motor Manufacturers and Traders chief executive Mike Hawes said the agreement was 'good news for US customers and a huge relief for the UK automotive companies that export to this critically important market'.
The Government is also due to update Parliament on Monday on ethanol and quotas on US beef.
Under the deal, it was agreed that a 20% tariff on US beef imports to the UK be removed and the quota for US beef raised to 13,000 metric tonnes.
The Vivergo Fuels site near Hull (Vivergo Fuels/PA)
A 19% tariff on ethanol imports from the US is also due to be removed, with a tariff-free quota of 1.4 billion litres of US ethanol applied.
The bioethanol industry says the deal has made it impossible to compete with heavily subsidised American products.
The UK's largest bioethanol plant warned last week that it could be weeks from stopping production.
Hull-based Vivergo Fuels said the start of talks with the Government was a 'positive signal' but that it was simultaneously beginning consultation with staff to wind down the plant.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Powys County Times
44 minutes ago
- Powys County Times
GB News announces expansion into the US
GB News is expanding into the US with a new live nightly show hosted by Bev Turner. The news channel, launched in 2021, will open a new bureau in Washington DC as it launches its services across the Atlantic. The two-hour programme will begin in September from a studio 'close to the White House' and will 'bring British audiences closer than ever to the political news which unfolds each day in America'. The programme will feature 'headline-making exclusives, thought-provoking interviews with major figures, and in-depth analysis of the Trump presidency as well as stories from across the US', according to GB News. The move includes an extension of GB News' distribution across the US, with content to be made available free to American audiences. Turner said: 'With the gutsiest guests and the most iconic backdrops, I intend to keep viewers up late. Fronting the next stage of GB News's evolution is both a huge honour and an immense responsibility, and I cannot wait to represent the people's channel on a global stage. 'We will be disrupting the late-night TV space as the next day's papers land in the UK and America's prime-time analysis gears up. This affords us the chance to deliver a unique UK-USA hybrid of political, cultural and social issues from the start-line of global politics. 'We will fulfil the need for a British voice with an international perspective to help our viewers get a sense of who's really on their side. 'Tapping into Washington's heartbeat and delivering real-time perspective with editorial edge, the show will be alive, and a conversation that's punchy, intelligent and unmissable. What happens in DC reverberates in GB and we will capture every moment. 'Our highly engaged British audience understands how events in the US are directly impacting government policy and living standards here. 'We have a job to do: bridging the gap between British and American politics in the fearless style that typifies GB News. 'We will include the very best guests that Washington has to offer, alongside quintessentially British voices in an unparalleled assessment of events on both sides of the Atlantic. 'This isn't just a media experiment, this is a market intervention. And I look forward to leading it from the front.' Turner, 51, who began presenting her own show on GB News in 2022, previously hosted a talk show on LBC and has appeared on ITV's This Morning and Good Morning Britain. Michael Booker, GB News editorial director, said: 'This is a huge moment for GB News as we grow our presence and deliver more of the fearless journalism that defines us. 'The world's biggest political story is playing out in Washington, and its impact is being felt daily in towns and cities across Britain. 'More than ever before, what happens in the USA is having huge consequences, both socially and economically, for the people of Britain. 'We've seen time and again this year that a decision made on one day in Washington DC is felt the next day in Washington, Tyne and Wear. 'It's essential the people's channel is right there, reporting live, asking the tough questions, and telling it like it is. 'While others scale back on live free coverage, GB News is investing in our content. 'Our new Washington investment, our expanded programming and our brilliant on-the-ground team will ensure we're not just reporting on the story but that we're right at the heart of it.'
Powys County Times
an hour ago
- Powys County Times
Women's Euros forecast to boost UK economy with pubs hoping to serve more pints
The Uefa Women's Euros is set to deliver a summertime boost to the UK economy with pubs hoping to serve millions of extra pints during the tournament, according to a leading trade body. Pubs being allowed to stay open later if England or Wales reach the final stages could also reel in more customers. The Uefa Women's Euro 2025 tournament kicks off in Switzerland on July 2, with England's Lionesses and Wales playing their first matches on Saturday July 5. Pubs are hoping to pull an additional 2.6 million extra pints during the tournament, the British Beer and Pub Association (BBPA) found, based on an estimated increase in pub beer sales during matches compared with the annual daily average. The BBPA, whose members brew 90% of British beer and own nearly half of UK pubs, said this could deliver a £13 million boost to the economy. Furthermore, pubs could be allowed to stay open beyond their usual closing time if either of the two countries reach the semi-finals or final of the Euros, which will take place towards the end of July. Emma McClarkin, chief executive of the BBPA, said: 'The pub has forever been regarded as a home away from home, especially for sports fans, so it's no surprise that fans will be flocking to the pub to cheer on our brilliant teams.' However, Ms McClarkin renewed calls for the Government to 'level the playing field and reduce beer duty', with England and Wales paying the fourth-highest tax rate compared with other nations competing in the tournament, she said. Alcohol duty is paid by manufacturers when they make their products, and the duty is generally then passed on to consumers through prices. Duty on draught pints was cut by 1.7% earlier in the year – meaning a penny off a pint in the pub.
Western Telegraph
an hour ago
- Western Telegraph
Fuel margins remain high despite lower prices at the pump, watchdog finds
The Competition and Markets Authority (CMA) said retailers' margins – the difference between what they pay for fuel and what they sell it at – remained high compared to historic levels. Fuel prices across the UK fell for both petrol and diesel over the three months to the end of May by 7.6 pence per litre (ppl) and 8.4 ppl respectively. But the CMA found that fuel margins were similar to the high levels seen during its road fuel market study – a review of the market to understand the factors influencing fuel prices undertaken in 2023 – which suggested overall competition in the UK's road fuel retail market remained 'weak'. Supermarket fuel margins fell from 8.9% in December 2024 to 7.9% in February 2025, before rising to 8.3% in March 2025, the regulator found. Non-supermarket fuel margins fell from 9.9% in December 2024 to 8.9% in January 2025, before rising to 10.4% in March 2025. The CMA also looked at the retail spread – the average price that drivers pay at the pump compared to the benchmarked price that retailers buy fuel at – across the UK from March 2025 to May 2025. It found that petrol retail spreads averaged 15.4 ppl, which was 1.5 ppl higher than the previous four-month period – and still more than double the average of 6.5 ppl over 2015 to 2019. Diesel retail spreads averaged 18.8 ppl, which was 4.6 ppl higher than the previous four-month period and more than double the average of 8.6 ppl in 2015 to 2019. Dan Turnbull, senior director of markets at the CMA, said: 'While there is uncertainty over how global events will impact the price of oil, our report shows fuel margins remain high compared to historic levels despite lower prices at the pump in recent months. 'The Government committed to launching a 'fuel finder' scheme following our recommendation to help drivers compare real-time prices and boost competition. 'Once launched, it will make it easier than ever to shop around and find the best deals.' RAC head of policy Simon Williams said: 'Given fuel is a major expense for households, and with eight in 10 drivers dependent on their cars, it's disappointing to see they've paid over the odds yet again. 'We have to hope the launch of the Government-backed Fuel Finder scheme, due at the end of the year, will stimulate competition and finally lead to fairer pump prices.' AA president Edmund King said: 'Once again, the CMA has exposed boosted margins and profits from petrol and diesel. Road fuel is a critical part of a consumer and family budgets. Increased fuel costs have a major influence on inflation. 'While the hope is that pump price reporting, which becomes mandatory at the start of the next year, might bring about more competition, what is happening now is not only bad news for drivers and businesses but also siphoning off potential consumer spending for the likes of tourism and others.' Mr King added: 'The clear and present danger now is the cost of petrol and diesel along holiday routes. Some of the prices are outrageous and we can only hope that drivers take maximum advantage of the price transparency provided by the CMA's voluntary reporting scheme to locate the competitive forecourts.'
