A new trade agreement between the United States and the United Kingdom took effect on Monday, lowering U.S. tariffs on British car and aerospace exports.
Under the deal, British automakers can now export up to 100,000 vehicles per year to the U.S. at a reduced tariff rate of 10%, down from the previous 27.5%. Additionally, tariffs on aircraft engines and parts have been completely removed.
However, uncertainty remains over steel and aluminum trade. The current U.S. exemption on British steel exports from 50% tariffs is set to expire on July 9, and without a new agreement, the tariffs could return.
While the agreement offers a boost to the UK’s automotive and aerospace sectors, it leaves British steel producers facing a tight deadline to secure continued tariff relief.
