Summary
The UK and US have started a new deal that lowers import taxes, allowing UK car makers to sell up to 100,000 vehicles in the US with a 10% tax, benefiting UK car and aerospace sectors. In return, the UK will remove taxes on US ethanol and beef imports, but tariffs on UK steel and aluminum are still in place, with negotiations ongoing until July 9. Other countries are also seeking trade deals with the US before the upcoming deadline.
Key Facts
- The UK-US deal began after being signed at the G7 summit.
- UK cars can now be sold in the US with a 10% tariff, down from the previous 27.5%.
- UK aerospace exports to the US will have zero tariffs.
- The UK will remove tariffs on US ethanol and increase the quota for US beef imports.
- UK steel and aluminum are still subject to a 25% tariff, which could double if no agreement is reached by July 9.
- The UK government believes the deal will save industries money and protect jobs.
- Other countries, like Thailand, are also in talks with the US to reduce tariffs.
- President Trump has stated it is unlikely he will extend the deadline for tariff negotiations.
