The UK-US trade agreement is now in effect today, significantly reducing US export tariffs for the UK’s automobile and aerospace sector.
Automotive and aerospace manufacturers will benefit from significant tariff cuts when exporting to the US after their groundbreaking trade contracts are in effect, potentially saving thousands of jobs.
The UK is the only country to secure this contract with the US, reducing car export fees from 27.5% to 10%, saving manufacturers hundreds of millions of people each year, and protecting hundreds of thousands of jobs.
At the same time, the aerospace sector is seeing the removal of 10% tariffs on goods such as engines and aircraft parts, and companies like Rolls-Royce continue to be at the forefront of innovation as they become more competitive.
These changes are a major victory for both sectors and will help ensure that UK manufacturers remain competitive worldwide, protect UK jobs, and continue to lead innovation and excellence.
Protection of UK Auto and Aerospace Employment
Today’s announcement illustrates the types of agile, sector-specific agreements outlined in the UK’s trade strategy. It is designed to provide quick and practical benefits to British companies and workers in major industries.
Jonathan Reynolds, Secretary of Business and Commerce, explained: “We have agreed to this agreement with the US to protect jobs and support growth in some of our most important sectors. Today, we provide that promise to the UK’s world-class automotive and aerospace industry.
“UK automakers are now able to export to the US by significantly lowering their tariff rates from 27.5% to 10%. Aerospace goods remove 10% tariffs, saving hundreds of millions of sectors each year and protecting thousands of jobs.”
Global tariffs on steel and aluminum have been removed
The government has worked with all parts of the US and UK industry to create the simplest, fair and effective quota system possible.
Thanks to the UK contract, the UK is the only country exempt from 50% global tariffs on steel and aluminum. As the Prime Minister and President Trump confirmed once again, this continues to advance and moves towards achieving a 0% tariff on core steel products.
“From today, our world-class automotive and aerospace industry will be reducing tariffs and protecting major industries that are essential to our economy,” Prime Minister Kiel said.
“We will always act in the national interest. We will support UK businesses and workers and submit plans for change.”
Automotive and aerospace tariff industry support will be reduced
Since the announcement of the UK-US trade agreement, experts in the automotive and aerospace sector have moved forward to sharing their support for this historic tariff reduction.
“We are pleased to announce that we are committed to providing a range of services and services to delivering the most innovative and affordable experience,” said Mike Hawes, CEO of SMMT. “The implementation of a new trading agreement between the UK and the US is good news for US customers and a great relief for the UK automotive companies exporting to this very important market.
“It will soon halt the US export market and cut down punitive tariffs that have threatened the viability of some of the most well-known names in British manufacturing.”
He added: “Combining new industrial and trade strategies that have car-hearted cars will allow UK businesses to look more optimistically towards the future.”
The government continues to lower the burden on UK businesses
The contract is one of many international agreements the UK government has recently secured to boost the country’s economy. This includes EU transactions that will add £4.8 billion to the UK economy, £2.2 billion in wages each year, and by 2040, EU transactions that will add around £9 billion to the economy with just SPS and emissions measurements.
Today’s announcement is the result of work done at a pace between the two governments to reduce the burden on UK businesses, particularly the sectors that are most affected by tariffs.
The government is currently renewing Congress on the implementation of US beef and ethanol allocations as part of its commitment to the US under this contract.
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