Thousands of UK jobs have been safeguarded as the UK finalised a landmark trade agreement with the United States, the first of its kind and a major win for UK exporters. It has been a long wait since 2016 for a USA deal, but it’s here.
This deal follows the UK–India Free Trade Agreement announced earlier, and delivers significant benefits across the automotive, steel, farming, and manufacturing sectors, all critical to the UK economy.
Automotive – Major tariff relief
- Tariffs on UK car exports to the US will drop from 27.5% to 10%, saving hundreds of millions annually for manufacturers like Jaguar Land Rover.
- The reduced rate will apply to up to 100,000 UK vehicles per year — nearly the total volume exported to the US last year.
Steel – 25% tariff removed
- A 25% tariff on UK steel exports has been negotiated down to zero, providing immediate relief to an industry recently at risk of collapse.
- This follows emergency government support for British Steel in Scunthorpe, protecting thousands of jobs and stabilising the sector.
Agriculture – Market access for UK beef
- UK farmers have secured a new export quota of 13,000 metric tonnes of beef to the US.
- The Government has confirmed that UK food safety standards will not be compromised in exchange for access.
Manufacturing – Ethanol tariff eliminated
The UK will remove tariffs on ethanol imports from the US, cutting costs for UK manufacturers who rely on this key input.
Wider economic impact
This is one of several high-impact trade deals recently secured by the UK Government:
- The UK–India Free Trade Agreement is forecasted to add £4.8 billion to GDP and boost wages by £2.2 billion annually.
What this means for UK businesses
For clients in export-heavy industries, this deal offers lower costs, better market access, and improved competitiveness. We recommend reviewing current US trade volumes and exploring opportunities to benefit from reduced tariff exposure.
If you’d like to understand how your business could benefit from the UK–US or UK–India trade deals, or for more information on any of the above, contact Senior Tax consultant, Nick Farmer, on 01905 777600 or email nickfarmer@ormerodrutter.co.uk
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