The US has agreed to reduce import taxes on a set number of British cars and allow some steel and aluminum into the country tariff-free, as part of a new agreement between the US and UK.
The announcement offers relief for key UK industries from some of the new tariffs President Donald Trump has announced since his return to the White House in January.
But it will leave a 10% duty in place on most goods from the UK.
Though hailed by the leaders of the two countries as significant, analysts said it did not appear to meaningfully alter the terms of trade between the countries, as they stood before the changes introduced by Trump this year.
No formal deal was signed on Thursday and the announcements from both governments were light on details.
Speaking from a Jaguar Land Rover factory in the West Midlands, Sir Keir Starmer described the agreement as a “fantastic platform”.
“This historic deal delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel,” he said, adding that the “the UK has no greater ally than the United States”.
At the White House, Trump called it a “great deal” and pushed back against criticism that he was overstating its importance.
“This is a maxed out deal that we’re going to make bigger,” he said.
The two sides said the US had agreed to reduce the import tax on cars – which Trump had raised by 25% last month – to 10% for 100,000 cars a year.
That will help luxury carmakers such as Jaguar Land Rover and Rolls Royce, but could limit growth in the years ahead, as it amounts to roughly what the UK exported last year.
Business Secretary Jonathan Reynolds told the BBC the UK was days away from losing thousands of jobs at carmakers facing US tariffs.
“This was very serious,” he said. “It would have meant people would have lost their jobs without this breakthrough.”
Tariffs on steel and aluminium, which Trump raised earlier this year to 25%, have also been slashed, according to the Prime Minister’s Office. The US said instead it would establish a quota, as had existed previously.
Credit: AOL