- New Trade Deal Announcement: The US and UK governments have unveiled a trade deal aimed at reducing tariffs and trade barriers, with the unchanged base tariff rate of 10% on UK exports to the US, while specific sectors like automotive, steel, and aluminium will see some tariff reductions.
- Sector-Specific Impacts: The deal offers significant benefits for the UK automotive industry, reducing tariffs from 27.5% to 10% for up to 100,000 exported units, while the steel and aluminium sectors, which previously faced high tariffs, will gain temporary relief amidst ongoing challenges such as global oversupply and rising production costs.
- Future Considerations and Regulatory Context: The long-term implications of the deal, including the potential for a baseline tariff of 10% for future negotiations, remain uncertain, but the overall sentiment among UK businesses is positive as clearer trade terms may encourage investment decisions that were previously postponed due to tariff uncertainties.
Source Grant Thornton
