From today, British car and aerospace manufacturers will benefit
from major tariff reductions when exporting to the US, saving
thousands of jobs, as the landmark UK-US trade deal comes into
effect.
The UK is the only country to have secured this deal with the US,
reducing car export tariffs from 27.5% to 10%, saving
manufacturers hundreds of millions each year and protecting
hundreds of thousands of jobs.
At the same time, the aerospace sector has seen the removal of
10% tariffs on goods such as engines and aircraft
parts, helping make companies such as Rolls Royce more
competitive and allow them to continue to be at the cutting edge
of innovation.
These changes are a huge win for both sectors and will help
ensure UK manufacturers remain globallycompetitive, protect
British jobs and continue to lead in innovation and
excellence.
Prime Minister 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 said:
“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.
“British car manufacturers can now export to the US at a
significantly reduced 10% tariff rate - down from 27.5% - and
aerospace goods will see 10% tariffs removed, saving sectors
hundreds of millions each year and safeguarding thousands of
jobs.
“This is a clear example of our Plan for Change in action:
cutting costs for businesses, speeding up delivery of trade
benefits, and helping UK industries thrive in a challenging
global environment.”
Kevin Craven, CEO of ADS said:
“News that tariffs on aerospace goods are to be relaxed is
welcome to the industry and regulatory bodies alike.
“The UK's aerospace sector is renowned for its
innovation and excellence, and thanks to our role in the global
supply chain, more than 100,000 people are employed in highly
skilled jobs in the sector throughout the
country.
“Efforts to reach this outcome are hugely appreciated by a
sector that has remained resilient against a multitude of
external pressures.”
Mike Hawes, Chief Executive of SMMT said:
“The implementation of the new trading agreement between the
UK and US is good news for US customers and a huge relief for the
UK automotive companies that export to this critically important
market.
"It immediately slashes the punitive tariffs that brought the
US export market to a standstill and threatened the viability of
some of the most famous names in British manufacturing.
"Securing the deal – the first and, so far, only automotive
deal in place with the administration – is a diplomatic coup and
provides a foundation on which to grow trade in the future.
Combined with the new Industrial and Trade Strategies that have
automotive at their heart, UK companies can look to the
future with more optimism.”
We have worked with the US and all parts of UK industry to build
a quota system which is as simple, fair and effective as
possible.
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 go further and make progress towards 0% tariffs on core
steel products as agreed.
Today's announcement demonstrates the kind of agile,
sector-specific agreement outlined in the UK's Trade Strategy —
designed to deliver rapid, practical benefits for British
businesses and workers in key industries.
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 now
update Parliament on the implementation of quotas on US beef and
ethanol, as part of our commitment to the US under this
deal.
ENDS
Notes to editors
