UK-US Trade Deal Reduces Auto, Aerospace Tariffs, Steel Tariffs Persist

The trade deal between U.S. President Donald Trump and British Prime Minister Keir Starmer has taken effect, significantly reducing tariffs for the UK's automotive and aerospace sectors. British car manufacturers can now export to the U.S. under a reduced 10% tariff quota, down from 27.5%, saving hundreds of millions annually and protecting thousands of jobs. The aerospace sector benefits from the removal of a 10% tariff on goods like aircraft engines and parts, boosting competitiveness for companies such as Rolls Royce. However, tariffs on UK steel remain at 25%, despite initial plans to reduce them to zero, with ongoing negotiations aimed at resolving this issue. Both leaders have emphasized the deal's importance in protecting British jobs and supporting growth in key industries, although the steel sector continues to face significant challenges. Industry representatives have welcomed the tariff relief for autos and aerospace but remain concerned about the unresolved steel tariffs.