Cars First to Benefit from UK-U.S. Deal

During the G7 Summit which is currently being held in Canada, Prime Minister Kier Starmer and President Trump announced the first implementation of the Economic Prosperity Deal that was announced on the 8th May.  

Within the announcement, it was confirmed that automobiles that are “products of the United Kingdom” will be able to benefit from an annual quota of 100,000 of which, imports within the quota, will be subjected to a 7.5% tariff rate plus the MFN rate of 2.5%, which equates to a total tariff of 10%.  This is instead of the current rate which is currently 25%. 

This tariff quota will become available “7 days after the publication of this order in the Federal Register”.  

Similarly, automotive parts which are of UK origin, and importantly for use in automobiles that are of UK origin, will similarly benefit from a reduced tariff rate of 10% rather than 25%.  

Wait goes on for Steel & Aluminium 

Unfortunately for manufactures of steel, aluminium and impacted derivatives, the wait goes on for the implementation of their tariff quota.   

Within the Executive Order, it simply states that a tariff-rate quota will be established and announced “at a future time that the Secretary...deems appropriate”.  

During the announcement at the G7 Summit, when the President was asked about the Steel & Aluminium tariffs, the President replied “we’re gonna let you have that information in little while”.