- 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
- New Trade Agreement: The United States and the United Kingdom have announced a new trade deal aimed at enhancing economic cooperation, reducing tariffs, and promoting bilateral trade across various sectors.
- Focus on Key Industries: The agreement emphasizes collaboration in key industries such as technology, pharmaceuticals, and agriculture, with provisions designed to facilitate trade and investment between the two nations.
- Regulatory Cooperation: The deal includes commitments to regulatory alignment and cooperation, which is expected to streamline trade processes, improve market access, and foster innovation in both countries.
Source EY
- Trade Deal Announcement: On 8 May 2025, the UK and US announced a trade deal aimed at reducing tariffs, enhancing market access, and streamlining customs processes, particularly for key sectors like automotive and steel.
- Tariff Reductions: The US will lower tariffs on UK-origin cars from 27.5% to 10% for the first 100,000 vehicles annually and eliminate 25% tariffs on UK-origin steel and aluminum, while the UK will remove tariffs on US-origin ethanol and allow a tariff-free quota for 13,000 metric tons of beef.
- Future Implications: Clients in affected industries should prepare for potential cost savings and increased market opportunities due to the trade deal, while remaining aware of ongoing negotiations and the broader context of US-EU trade relations, which may lead to countermeasures from the EU against US tariffs.
Source EY
