A UK-US trade agreement reducing tariffs on British car and aerospace exports is now in effect, with steel and aluminium duty discussions ongoing.
According to statements from the UK government, a trade agreement between the US and the UK, aimed at reducing certain tariffs on British exports, came into force on 30 June 2025.
Under the deal, tariffs on British car exports to the US have been reduced from 27.5% to 10%, with an annual quota of 100,000 vehicles. In addition, the US has fully eliminated the existing 10% tariff on aerospace products, including aircraft engines and parts.
“Our historic trade deal with the United States delivers for British businesses and protects UK jobs,” Prime Minister Keir Starmer said in the same statement.
In exchange, the UK has agreed to expand market access for US exports of ethanol and beef, subject to compliance with British food safety regulations. This provision has drawn concerns from UK farmers and chemical industry representatives.
Negotiations are ongoing regarding US tariffs on British steel and aluminium. Although the UK has so far avoided tariffs of up to 50% recently imposed on other countries, it may be subject to elevated duties starting 9 July unless further agreement is reached. The UK government reaffirmed its commitment to continue negotiations aimed at achieving 0% tariffs on core steel products.
