UK Secures Landmark US Trade Deal Slashing Tariffs and Safeguarding Key Industries

The UK Government has secured a landmark ‘first-of-its-kind’ trade agreement with the United States, cutting tariffs and delivering major wins for the UK’s car manufacturing, steel, and agricultural sectors. The deal, announced just days after the India Free Trade Agreement, is expected to protect jobs, boost exports, and provide economic stability for key industries.

One of the most significant outcomes is a reduction in car export tariffs from 27.5% to 10%, saving hundreds of millions annually for companies like Jaguar Land Rover (JLR). The revised tariff will apply to 100,000 UK-built cars—equivalent to the total number exported to the US last year. JLR CEO Adrian Mardell welcomed the move, calling it a “vital step for the sector and the communities it supports.”

The agreement also removes the 25% steel tariff, which had placed immense pressure on the UK steel industry. This comes after the Government’s recent intervention to take control of British Steel, safeguarding thousands of jobs in Scunthorpe.

In agriculture, UK farmers have secured a beef export quota of 13,000 metric tonnes, with no compromise to UK food standards. In return, the UK will eliminate tariffs on ethanol imports, reducing costs for British manufacturers.

Prime Minister Keir Starmer hailed the deal as a win for workers and exporters:

“This historic deal protects thousands of British jobs in car manufacturing and steel. It’s jobs saved, jobs won—but not job done.”

Business and Trade Secretary Jonathan Reynolds added:

“This is only the beginning. We’re laying the groundwork for a broader UK-US economic partnership.”

The trade deal also sets the stage for deeper collaboration in advanced technologies, including biotech, quantum computing, and aerospace. Additionally, the UK will receive preferential treatment in any future US tariff decisions under Section 232.

While the Digital Services Tax remains unchanged for now, both nations will begin work on a digital trade agreement aimed at reducing red tape for UK tech firms exporting to the US.

Industry groups including SMMT and the Confederation of British Metalforming (CBM) welcomed the deal, praising its impact on confidence, competitiveness, and transatlantic cooperation.

As the UK continues to chart a global economic course post-Brexit, this agreement marks a significant step forward in securing new opportunities for British businesses and workers.