Trade deal on UK car exports to US ‘a floor rather than a ceiling'
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), described the agreement as 'absolutely vital'.
The trade deal was confirmed in a call between Prime Minister Sir Keir Starmer and US President Donald Trump on May 8.
It included American tariffs on UK cars falling to 10% for the first 100,000 vehicles exported to the US.
Mr Trump had previously set the tariff rate on car exports to the US at 27.5%.
UK car makers were intensely worried about the impact tariffs on their industry would have had if left unchecked.
Mr Hawes said the details of the agreement 'will be reviewed' and 'we view this as the floor rather than the ceiling'.
He went on: 'Ultimately, we want to demonstrate that the UK industry and the exports we make are not in competition with US manufacturers.
'We hope to get this implemented urgently, because manufacturers have vehicles ready to ship, but don't know how to price them.'
Mr Hawes said Mr Trump's initial tariff plans meant the UK's automotive industry 'faced an existential threat' and 'orders stopped overnight' as buyers chose to 'wait and see what happens'.
He continued: 'Getting a deal was absolutely vital for the industry.'
Mr Hawes said the UK Government deserves 'a tremendous amount of credit' as it was 'first in line to get a deal' with the US, and automotive was 'at the very top of their list of priorities'.
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