UK-US trade deal

• Immediate benefits for UK auto and aerospace sectors as tariffs are slashed under the UK-US trade deal, protecting British jobs across the country.
• UK car manufacturers can now export to the US under a reduced 10% tariff quota saving hundreds of millions annually and supporting hundreds of thousands of jobs.
• The UK aerospace sector also gains a major boost, with 10% tariffs on goods like engines and aircraft parts removed today and a commitment to maintain them at 0%.

From today, British car and aerospace manufacturers will benefit from major tariff reductions when exporting to the US, saving thousands of jobs, as the landmark UK-US trade deal comes into effect.

The UK is the only country to have secured this deal with the US, reducing car export tariffs from 27.5% to 10%, saving manufacturers hundreds of millions each year and protecting hundreds of thousands of jobs.

At the same time, the aerospace sector [...]

UK production of cars, vans, trucks, taxis, buses and coaches increased by 17.1% to almost 80,000 units last month, when compared to March 2024.

Car manufacturing grew for the first time in 12 months, driven by robust export demand that increased by 30.6%, with almost three quarters (73.3%) of output shipped overseas.

However, the new figures, published by the Society of Motor Manufacturers and Traders (SMMT), show that production for the UK market fell by 6.1%.

The EU continued to be the largest destination for UK car exports, accounting for 57.2% of all shipments.

Ahead of the introduction of new tariffs, the US remained the second largest export market, comprising 15% of exports, followed by China (8.5%), Turkey (2.7%) and Japan (2.6%).

Exports to all top five markets rose for the month, with the EU up by 28.9%, the US 36.1%, China 86%, Turkey [...]