Prime Minister Keir Starmer speaks during a visit to a Jaguar Land Rover car factory on April 7, 2025 in Birmingham, United Kingdom.\u00a0<\/p>\n
Wpa Pool | Getty Images News | Getty Images<\/p>\n
LONDON \u2013 The U.K.-U.S. trade deal comes into play on Monday, giving a preferential tariff rate to British cars imported to America, while questions linger over final levies on the U.K.’s metal exports.<\/p>\n
Back in May<\/a>, the U.K. became the first country to negotiate a trade deal with the U.S. since White House leader Donald Trump unveiled his so-called reciprocal tariffs a month prior. The terms of the agreement are effective as of June 30.<\/p>\n Under the deal, a blanket 10% tariff now applies to U.K. goods imported into the United States.<\/p>\n It will also see the first 100,000 vehicles sold from the U.K. to the U.S. every year subjected to a 10% tariff. Any further vehicles sent to the U.S. will receive a 25% import duty.<\/p>\n According to\u00a0figures<\/a>\u00a0from influential autos trade body the Society of Motor Manufacturers and Traders (SMMT), around 102,000 cars manufactured in Britain were exported to the U.S. last year.<\/p>\n The U.S. has a trade surplus on goods<\/a> with Britain, meaning it exports more to the U.K. than it imports. Cars are the U.K.’s largest export<\/a> to the United States, with the U.S. emerging as the top buyer of British cars globally. Last year, 27.4% of all U.K. car exports were shipped to America.<\/p>\n The 10-25% tariff range is sharply lower from the 50% levy slapped on vehicles imported to the U.S. from other trade partners.<\/p>\n Britain’s deal with the U.S. will also remove duties from Britain’s aerospace sector.<\/p>\n But London is still working on bringing down tariffs on key industrial metals.<\/p>\n While Britain is the only nation that currently has a preferential 25% tariff rate<\/a> on its steel and aluminum exports to the U.S., compared to a larger 50% for other American trade partners, the two nations have spoken of reducing tariffs on British steel to 0%. The U.S. is the fourth-biggest export market for British iron and steel.<\/p>\n