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Prime Minister Sir Keir Starmer has secured a historic trade deal with the United States, dramatically slashing tariffs on UK exports and delivering a major win for Britain’s steel and automotive sectors.
This first-of-its-kind bilateral agreement reduces punitive US tariffs on British automobiles, steel, aluminium, and ethanol, while opening unprecedented access for UK farmers saving thousands of jobs and offering new economic momentum for post-Brexit Britain.
“This historic deal delivers for British business and British workers… This is jobs saved, jobs won – but not job done,” said Prime Minister Starmer.
Key Highlights of the Deal
- Automotive Tariffs Cut from 27.5% to 10%
UK car exports to the US (quota: 100,000 vehicles) now face significantly reduced tariffs, saving companies like Jaguar Land Rover hundreds of millions annually. - Steel and Aluminium Tariffs Reduced to 0%
British steelmakers will now export tariff-free, following the removal of 25% tariffs — a lifeline for plants like British Steel in Scunthorpe. - Boost for UK Farmers
A 13,000-tonne beef export quota granted to UK farmers with no compromise on UK food standards. - Ethanol Imports Liberalized
UK to remove tariffs on ethanol from the US supporting domestic manufacturing.
Economic and Strategic Benefits
The deal follows a trade agreement signed earlier this week with India, and signals a renewed international trade strategy focused on growth, employment, and industrial resilience.
Business and Trade Secretary Jonathan Reynolds praised the “calm and proactive” approach that enabled the breakthrough, while JLR CEO Adrian Mardell welcomed the added certainty for the sector, which supports over 250,000 jobs.
The UK will now enjoy preferential treatment in future Section 232 tariffs and pursue a UK–US technology partnership in high-value sectors such as:
- Quantum computing
- Nuclear fusion
- Aerospace
- Biotech & life sciences
Additionally, both nations agreed to pursue a digital trade agreement, simplifying red tape for UK exporters to the US a major step forward in digital economic cooperation.
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