UK Auto Tariffs Slashed in First Trade Deal With US
Not long after the Trump administration levied high tariffs on auto imports, the United States and the United Kingdom have announced their intent to come to a trade agreement that will reduce car tariffs from 27.5% to 10%. If finalized, this will be the first agreement of its kind with another nation, and it will see UK car imports tariffed less than cars from any other country.
The
New York Times
describes this
as appearing to be "more of a framework than a full trade deal," so there are many details for both the US and UK to work out. In a press release, the UK government said that the 10% tariff has a quota of 100,000 cars annually. Last year, Jaguar Land Rover sold a little under 95,000 cars total in the US. Other UK automakers exporting to the US include Aston Martin, Bentley, McLaren, Mini, and Morgan. With the exception of Land Rover and Mini, no UK automaker sends a significant number of cars to the US.
Many UK automakers suspended US exports when tariffs came into effect, though JLR, for example, already re-started imports.
Aston Martin also said that it would raise prices
and limit exports to the US. The US is also removing all tariffs on British steel and aluminum, which is good news for more than just Judas Priest fans.
"The car industry is vital to the UK's economic prosperity, sustaining 250,000 jobs," said JLR CEO Adrian Mardell in a statement. "We warmly welcome this deal which secures greater certainty for our sector and the communities it supports. We would like to thank the UK and US Governments for agreeing this deal at pace and look forward to continued engagement over the coming months."
More on Tariffs
The Cheapest Ford Maverick Now Costs $30,000 Thanks to Tariffs
GM Expects to Lose '$4 to 5 Billion' Over Tariffs
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