8:32 am, June 17, 2025
The UK-US trade deal which slashes tariffs on British cars imported into the States has been agreed and rubber stamped.
That is according to US president Donald Trump, who said that the deal was ‘done’ as he met with Sir Keir Starmer at the G7 summit yesterday.
The Prime Minister said the completed deal ‘implements on car tariffs and aerospace’, and described the agreement as a ‘sign of strength’ between Britain and America.
The news has been welcomed by the SMMT, which said the agreement would bring ‘huge reassurance’ to workers across the automotive industry.
The trade body’s boss, Mike Hawes, added that the deal ‘should be recognised as a significant achievement’ with the UK securing a deal ahead of its nearest competitors.
The SMMT CEO said: ‘This is great news for the UK automotive industry, helping the sector avoid the severest level of tariffs and enabling many manufacturers to resume deliveries imminently.
‘We wait to see the full details of the deal and how it will be administered but this will be a huge reassurance to those that work in the sector and bolster the confidence of our important US customers.
‘The fact the UK has secured a deal, ahead of many competitors, and which makes automotive a priority, should be recognised as a significant achievement.’
Despite the PM and President confirming the deal on car tariffs, Trump did signal that an agreement about tariffs on British steel exports to the US could take longer to finalise.
‘We’re gonna let you have that information in little while,’ he said when asked by reporters about steel tariffs.
Under the broad terms of last month’s agreement, the US is set to implement quotas that will effectively eliminate the tariff on British steel and reduce the tariff on UK vehicles to 10%.
However, the reduced rate only applies to the first 100,000 cars imported into the US, with Car Dealer reporting last week that ministers may have to choose the carmakers who will be spared the 25% charge.
Speaking to reporters at the summit in Kananaskis, Alberta, the PM indicated that the car and aerospace elements of the deal had been finalised.
As they met, he told the US President: ‘Donald, thank you very much. This now implements on car tariffs and aerospace. A really important agreement. And so this is a very good day for both of our countries, a real sign of strength.’
While uncertainty remains about American tariffs on UK steel, the US president claimed Britain was protected from other tariffs in future.
He told reporters: ‘The UK is very well protected, you know why? Because I like them.’
