US-UK Trade Deal Cuts British Car Tariffs, Raises North American Auto Tariffs

The recent US-UK trade deal reduces tariffs on British car imports to the US from 25 percent to 10 percent for the first 100,000 vehicles, a move welcomed by the British automotive industry as it protects thousands of jobs and alleviates the threat of damaging tariffs. However, the American Automotive Policy Council criticized the agreement for disadvantaging US automakers with supply chains in Canada and Mexico, who still face 25 percent tariffs under the USMCA, arguing the deal unfairly favors British cars with minimal US content. President Trump defended the tariff reduction, highlighting that it applies mainly to luxury British brands like Rolls-Royce and Bentley, which produce limited numbers of vehicles, while emphasizing the agreement's broader benefits for US exports, notably in agriculture. The Trump administration has also introduced measures to ease tariffs on imported auto parts and to prevent double tariffs on steel and aluminum used in vehicles assembled in the US, though tariffs on finished autos remain. Industry leaders from both countries have expressed optimism that the deal represents a pragmatic approach to trade negotiations and could pave the way for further cooperation and reduced trade barriers between the US and UK. Despite the UK gains, US automakers remain concerned about the competitive disadvantage created by the deal relative to their North American partners.