UK-US Benefits Kick-In for Automotive and Aerospace Sectors

From today, 30th June, qualifying UK businesses can take advantage of the first trade benefits, which were originally laid out in the UK-US Economic Prosperity Deal.  

As reported in our update last week, the tariff reduction benefitting UK-origin cars and the UK aerospace sector has indeed come into force before the end of the month.   

The reduction in tariffs will see UK-origin cars exported to the U.S. being subjected to a 10% tariff rather than the current 27.5%.  At the same time, the aerospace sector has seen the removal of 10% tariffs on goods such as engines and aircraft parts.   

Of the introduction of these tariff benefits, the Business & Trade Secretary, Jonathan Reynolds, said: 

“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”. 

However, there is still no update in regards to steel & aluminium tariff reductions.  Within the EPD, it was proposed that tariffs on these goods would be reduced to 0%, though no official agreement has yet been announced.  Previously, President Trump had set a deadline of the 9th July to complete these talks, after which date he has threatened to bring UK-originating steel and aluminium in line with the rest of the world by making them subject to a 50% tariff rate.