Following a major agreement with India, the UK also signed a limited trade deal with the United States last week.
The announcement came after a disjointed conference call between the Prime Minister and US President, but the outcome marks a step forward in transatlantic trade ties.
Core Tariffs Remain Intact
Despite hopes for broader liberalisation, the 10% base tariff on most UK exports to the US remains in place. While some industries will benefit from targeted relief, many sectors are unaffected by the current deal.
Automotive Gains, With Limits
A key feature of the agreement is a reduction in US tariffs on UK-manufactured cars—from 27.5% to 10%. However, the change only applies to 100,000 vehicles per year, roughly matching existing export levels. While the move has been welcomed politically, automotive leaders caution that the cap limits its long-term commercial impact.
Steel and Aluminium Tariffs Lifted
The agreement eliminates 25% tariffs on UK steel and aluminium. Though these sectors account for a relatively modest £700 million in annual exports, the removal of duties is symbolically important and could help support jobs following recent government intervention in the industry.
Agricultural Terms Straddle a Fine Line
The UK has upheld bans on chlorinated chicken and hormone-treated beef, but allowed up to £5 billion in US agricultural exports. In exchange, UK beef farmers receive exclusive access to the American market, a win for British agriculture.
Global Freight Services Can Help
Navigating new trade terms can be complex. Global Freight Services is ready to help businesses stay compliant and keep cargo moving smoothly.