British carmakers and manufacturers have welcomed the newly signed UK-US trade deal, which includes a significant reduction in tariffs on automotive and steel exports, offering long-awaited relief to key industrial sectors.
The agreement — the first struck under President Trump’s renewed trade agenda — eliminates proposed American tariffs of 27.5% on British steel and reduces car tariffs to 10%, covering up to 100,000 UK car exports annually. However, a 10% blanket tariff will remain in place on other British goods, raising an estimated $10 billion for the US Treasury.
The trade deal triggered a rally in UK industrial and automotive stocks, with companies heavily exposed to the US market leading the gains. Melrose Industries jumped 5.2%, IMI rose 5.1%, and Rolls-Royce gained 3.7%. Shares in Aston Martin Lagonda, seen as a direct beneficiary, soared nearly 14%, helping to lift the FTSE 250 index by 0.6%.
“This deal removes a severe and immediate threat to UK automotive exporters,” said Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders. “It provides much-needed relief, allowing both the industry and its workforce to approach the future more positively.”
In exchange for tariff relief, the UK has agreed to reduce import duties on American ethanol and allow greater market access for US beef, though it stopped short of conceding on food safety standards or digital tax reforms targeting US tech giants.
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