The announcement of a UK and US trade deal has been met with relief as the UK economy navigates the tariffs imposed in the last few months by US President Donald Trump. The automotive sector is the largest export to the US from the UK and so had the potential to experience huge disruption as a result of the US tariffs.
With £9 billion worth of exports heading to the US in 2024, the automotive sector can breathe a sigh of relief as Trump has confirmed that 100,000 cars each year will be able to enter the US at the baseline tariff rate of 10%, rather than the otherwise imposed 27.5%. Whilst that number represents 0.6% of the US market, it will allow for more security in the sector in the UK, but it is not a fixed number with the ability to increase the quota in future.
UK Prime Minister Keir Starmer hailed the deal as a great achievement, and one that will secure jobs for the future and showcase the innovation of both the UK and the US and celebrated 'the very many thousands of jobs that will now be protected, saved and enhanced' now that we have done this deal'
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