The new UK-US trade deal, announced with fanfare as a major step in transatlantic economic relations, offers little benefit to the UK’s automotive sector, according to the audit and tax experts at Blick Rothenberg.
The deal — officially titled the General Terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal — will reduce tariffs on British car exports to the US from 27.5% to 10%. However, Robert Salter, Director at Blick Rothenberg, argues the agreement merely limits the damage caused by President Trump’s previous protectionist policies and does not open new market opportunities.
“While a 10% tariff is clearly better than the 27% imposed under President Trump, it’s important to remember that under the previous administration of Joe Biden, UK car imports faced only a 2.5% tariff,” said Salter.
The 10% tariff will apply only to the first 100,000 vehicles imported into the US each year. The UK exported approximately 101,000 vehicles to the US last year, meaning the agreement effectively caps growth.
“This limit means that the UK automotive sector cannot expand exports to the US without being hit with higher tariffs,” Salter explained. “All the deal does is preserve the status quo — it doesn’t help the sector grow.”
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