A new trade agreement between the United States and the United Kingdom (TADAWUL:4280) officially came into effect on Monday, reducing U.S. tariffs on British car exports and aerospace components.
British carmakers can now export up to 100,000 vehicles annually to the U.S. under a reduced 10% tariff quota, down from 27.5%, while tariffs on aircraft engines and parts have been fully eliminated.
However, pending issues remain on steel and aluminum tariffs. While U.K. steel exports are currently exempt from the U.S.’s 50% tariffs, this reprieve expires on July 9, after which the duties could be reinstated unless a further agreement is reached.
The deal is expected to rejuvenate British auto and aerospace exports but leaves steelmakers under a tight timeline to secure long-term tariff relief.
