For the first time, the US has committed to reducing tariffs on
UK aerospace goods such as engines and similar aircraft parts
from the general 10% tariff being applied to all other countries,
which is expected to come into force by the end of the
month.
This deal is a huge win for the UK's world-class aerospace sector
currently facing additional 10% tariffs, helping make companies
such as Rolls Royce more competitive and allowing them to
continue to be at the cutting edge of innovation.
British car manufacturers can also breathe a sigh of relief as
they will be able to export to the US at a 10% tariff rate as
part of the recently agreed landmark UK-US trade deal by the end
of the month.
The UK is the only country to have secured this agreement with
the US which reduces car export tariffs from 27.5%, saves car
manufacturers hundreds of millions a year, and protects tens of
thousands of jobs, delivering on our Plan for Change.
Business and Trade Secretary, said:
We agreed this deal with the US to ensure jobs and livelihoods in
some of our most vital sectors were protected, and since then we
have been focused on delivering those benefits to
businesses.
Bringing trade deals into force can take several months, yet we
are delivering on the first set of agreements in a matter of
weeks. And we won't stop there.
As part of our Plan for Change, this government is doing all it
can to reduce the pressures on businesses by lowering costs,
speeding up delivery times and helping them to navigate in a time
of global uncertainty.
Chief Executive of the Society of Motor Manufacturers and
Traders (SMMT), Mike Hawes said:
This is great news for the UK automotive industry, helping the
sector avoid the severest level of tariffs and enabling many
manufacturers to resume deliveries imminently.
We wait to see the full details of the deal and how it will be
administered but this will be a huge reassurance to those that
work in the sector and bolster the confidence of our important US
customers.
The fact the UK has secured a deal, ahead of many competitors,
and which makes automotive a priority, should be recognised as a
significant achievement.
Thanks to the UK-US deal, the UK is the only country to be exempt
from the global tariff of 50% on steel and aluminium. As the
Prime Minister and President Trump have again confirmed, we will
continue to go further and make progress towards 0% tariffs on
core steel products as agreed.
We have agreed reciprocal access to 13,000 metric tonnes beef for
both US and British farmers – meaning the UK can export to the US
too. We have been clear that any US imports will need to meet UK
food safety standards, and that has not changed since we agreed
this deal.
Both countries remain focused on securing significantly
preferential outcomes for the UK pharmaceutical sector and work
will continue to protect industry from any further tariffs
imposed as part of Section 232 investigations.
This deal is one of many international agreements this government
has secured recently to boost our economy, including a trade deal
with India which will add £4.8 billion to the UK economy and £2.2
billion in wages every year and a renewed EU deal which will add
nearly £9 billion to the UK economy by 2040 on SPS and emissions
measures alone.
Today's announcement is the result of work happening at pace
between both governments to lower the burden on UK businesses,
especially the sectors most impacted by the tariffs. We will
update Parliament on the implementation of quotas on US beef and
ethanol, part of our commitment to the US under this deal.
