The UK and US have officially implemented a trade deal that reduces import tariffs between the two countries. This gives British car manufacturers an advantage in the US market and eliminates tariffs on UK aerospace exports. However, there is still no resolution on tariffs for UK steel and aluminium, which could potentially double if a deal is not reached by the deadline of 9 July. This agreement, signed at the G7 summit, aims to reduce the sweeping tariffs imposed by US President Donald Trump earlier this year. UK Prime Minister Sir Kier Starmer has hailed it as a “historic deal” that will protect key industries and jobs in the British economy. Under the deal, UK carmakers can now sell up to 100,000 vehicles a year in the US with a reduced tariff of 10%, down from 27.5%. The Business and Trade Secretary, Jonathan Reynolds, has stated that this will save sectors “hundreds of millions” and safeguard “thousands of jobs.” However, details on steel and aluminium tariffs are still being negotiated and remain at 25%, with the potential to increase to 50%. This uncertainty is causing frustration and concern for industries such as Sheffield-based Marcegaglia, which produces steel in the US but sources materials from its Sheffield plant. The lack of a resolution on steel tariffs is causing uncertainty and making trade with the US more difficult. In a recent interview, Trump stated that he is unlikely to extend the deadline for countries to secure trade deals with the US, but has not completely ruled it out. The UK has also agreed to scrap tariffs on US beef imports and increase the quota, but there are concerns about the use of hormones in US beef production. The UK government has assured that proper certification and border checks will prevent hormone-reared beef from entering the country. Additionally, the UK will now allow up to 1.4 billion litres of US ethanol to enter the country tariff-free, which is causing concern for the UK bioethanol industry due to heavy subsidies in the US. Other countries, such as Thailand, are also seeking to negotiate trade deals with the US to reduce tariffs on their goods.
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