The landmark UK-US trade deal has officially come into force, providing immediate and significant tariff reductions for the UK's automotive and aerospace sectors, promising to save hundreds of millions annually and safeguard countless jobs.
In a momentous development for British industry, the highly anticipated trade agreement between the United Kingdom and the United States has today, June 30, 2025, been fully implemented. This crucial deal sees the immediate slashing of US export tariffs, offering a substantial boost to the UK's thriving automotive and aerospace industries. The Department for Business and Trade announced the activation of the agreement, heralding a new era of competitiveness for British manufacturers.
Under the terms of the new deal, UK car manufacturers can now export their vehicles to the US with a significantly reduced 10% tariff quota. This represents a substantial decrease from the previous 27.5% tariff, which is expected to yield annual savings of hundreds of millions of pounds for British companies and, critically, protect hundreds of thousands of jobs across the country.
The benefits extend equally to the UK's world-renowned aerospace sector.5 Today marks the complete removal of 10% tariffs on a wide range of goods, including vital components such as engines and aircraft parts. This commitment to maintain zero tariffs on these critical exports is poised to enhance the global competitiveness of major British players like Rolls Royce, enabling them to continue leading in innovation and excellence within the global aerospace market.
Jonathan Reynolds MP emphasized the strategic importance of these changes, stating that they are a "huge win for both sectors" and will play a pivotal role in ensuring UK manufacturers remain globally competitive, safeguarding British jobs, and fostering continued leadership in innovation and excellence.
The agreement's implementation also underscores the UK's broader trade strategy, which focuses on agile, sector-specific agreements designed to deliver rapid and tangible benefits for British businesses and workers in key industries. The government has confirmed its diligent work with the US and all facets of UK industry to establish a quota system that is "simple, fair and effective."
Further reinforcing the strength of the UK-US economic partnership, the UK remains the sole country exempt from the global 50% tariff on steel and aluminium. Following recent confirmations from the Prime Minister and President Trump, both nations are committed to progressing further towards a 0% tariff on core steel products, as previously agreed.
This deal is a testament to the UK government's proactive approach to international trade. It is one of several significant international agreements recently secured to bolster the UK economy, including a trade deal with India projected to add £4.8 billion to the UK economy and £2.2 billion in wages annually.
