Tariff reduction on UK cars and aircraft parts to the US takes effect

Monday 30 June 2025 - 14:34

By: Zahouani Ilham

Tariff reduction on UK cars and aircraft parts to the US takes effect

A trade agreement between U.S. President Donald Trump and UK Prime Minister Keir Starmer, aimed at reducing certain tariffs on British imports, officially took effect on Monday, according to the British government.

Under this new deal, UK car manufacturers can now export vehicles to the United States with a significantly reduced tariff of 10%, down from the previous 27.5%. Additionally, the existing 10% tariffs on items such as aircraft engines and aircraft components have been completely eliminated.

Despite these developments, the matter of tariffs on British steel and aluminum remains unresolved. While the UK has so far avoided the steep tariffs of up to 50% that the U.S. recently applied to other countries, it could be subject to these higher duties starting July 9 unless a new agreement is finalized.

The British government stated that it remains committed to continuing negotiations and aims to secure 0% tariffs on key steel exports as previously discussed.