U.K.-U.S. Trade Deal Takes Effect With New Tariffs On British Cars

A new U.K.-U.S. trade deal took effect Monday, cutting tariffs on British vehicle and aerospace exports while leaving steel duties unresolved, according to CNBC. The agreement is the first struck since Trump’s reciprocal tariffs policy was announced. It imposes a 10% tariff on the first 100,000 British cars imported annually into the U.S., with a 25% rate beyond that. British carmakers exported about 102,000 vehicles to the U.S. last year, making it their top market. The U.K. auto industry welcomed the move, calling it vital to restoring competitiveness. The U.K.-U.S. trade deal removes duties on British aerospace exports, but talks to lower tariffs on industrial metals are still underway. Prime Minister Keir Starmer called the deal “historic” and essential for protecting jobs and national industries.