UK Secures Major Tariff Cuts in Landmark US Trade Deal, Boosting Aerospace and Automotive Sectors

In a significant boost for British industry, the UK has become the only country to secure tariff reductions from the US on key aerospace and automotive exports. As part of a new UK-US trade agreement, the deal will see tariffs on UK aerospace products—including engines and critical aircraft parts—cut from 10%, with the changes expected to take effect by the end of the month.

This breakthrough is particularly impactful for companies like Rolls-Royce, which will now benefit from improved competitiveness in the US market. As the aerospace sector continues to lead global innovation, this move helps protect high-value exports and support skilled jobs in the UK.

Tufan Erginbilgic, CEO of Rolls-Royce, welcomed the development, calling it “truly significant.” He added, “The USA is a vitally important market for Rolls-Royce. These tariff exemptions, along with the UK Government’s expected commitment to aerospace in its upcoming Industrial Strategy, will help the industry thrive, create jobs, and deliver growth.”

UK car manufacturers are also set to benefit, with new terms reducing export tariffs to 10%—down from 27.5%—again making the UK the only country to achieve this level of preferential treatment. The change is expected to save manufacturers hundreds of millions of pounds annually and protect tens of thousands of jobs across the UK.

Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), praised the deal, noting it would allow many manufacturers to resume US deliveries and avoid the harshest tariffs. “This is great news for the UK automotive industry,” he said, “and should be recognised as a significant achievement.”

Business and Trade Secretary Jonathan Reynolds highlighted the speed and impact of the agreement: “We agreed this deal with the USA to protect vital sectors. We’re already delivering those benefits in weeks—not months—lowering costs, improving delivery times, and reducing pressure on businesses.”

Additionally, the UK remains the only country exempt from the US’s global 50% tariff on steel and aluminium, and both governments have reaffirmed their commitment to progressing toward zero tariffs on core steel products.

This trade milestone underscores the UK’s position as a key global manufacturing partner and reflects the government’s strategic push to secure post-Brexit economic advantages for British industry.