British automakers now have privileged access to the largest consumer market in the world thanks to an agreement between the US and the UK to lower import duties. While duties on UK aerospace exports have been reduced to zero, it will enable UK automakers to ship up to 100,000 vehicles to the US at a 10% tariff, giving them a significant competitive edge over foreign rivals.
The British bioethanol business claims that the UK’s decision to remove tariffs on beef and US ethanol imports will make it difficult for it to compete. The 25% duty on UK steel and aluminium, however, might jump to 50% if an agreement between the US and the UK cannot be reached by the deadline of July 9.
The deal, which was struck earlier this month at the G7 conference, reduces some of the massive tariffs that US President Donald Trump slapped in April and caused a worldwide market meltdown. Prime Minister Sir Keir Starmer of the United Kingdom referred to it as a “historic deal” that would protect important businesses essential to the British economy.
The US-UK deal lowers the tax from 27.5% to 10% for UK automakers selling up to 100,000 vehicles annually to the US. The UK aerospace industry will also no longer be subject to tariffs. Jonathan Reynolds, the business and trade secretary, said that lowering tariffs would protect “thousands of jobs” and save industries “hundreds of millions each year.
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