UK-made vehicles imported into the US will be hit with a reduced tariff of 10%, president Donald Trump has announced.
It follows more than a month of negotiations between UK ministers and US officials after president Trump revealed sweeping levies on foreign-made products. This included a 25% tariff on new cars imported into the US. All levies were due to start on 1 April, but a 90-day reprieve was given so negotiations could take place.
Details were sparse, but the US confirmed that the 10% tariff will apply to “100,000 cars”. This suggest anything over that number would be hit by the higher 25% figure.
Last year the UK sent 112,000 cars to the US market. The US is the British car industry’s second largest export market, behind the EU, with 27% of all UK-made vehicles sent to the market in 2024, accounting for some £9bn a year.
No details were given on the proposed 25% tariffs on car parts – which was due to begin in the coming months.
While details have yet to be fully confirmed, it is said also confirm new deals on food, chemicals, machinery and industry.
The UK is the first nation/market to reach an agreement with the US following president Trump’s tariff announcement in March.
Announcing the deal from the White House’s Oval Office, president Trump said: “I’m thrilled to announce a breakthrough trade deal. The agreement with one our closest and most cherished allies.
“Final details are being written up and will be detailed in the coming weeks.”
He added that the deal gets rid of US to UK tariffs that “unfairly discriminated” against US. “They are opening up their country. Their current is a little closed,” said Trump.
Prime minister Keir Starmer added: “This is a really fantastic historic day. A real tribute to the history we have of working together. “This [deal] is going to boost trade.”
Thursday’s news marks a major step down from president Trump’s end of March announcement, where he signed a bill that penalised all car makers that import cars into the American market.
At the time, Trump said the decision was made because of the imbalance of American-made car sales in other markets, and claimed the move would lead to “tremendous growth” for the US automotive industry. Around eight million cars were imported into the US last year, approximately half the total sold in the market, most were from Mexico, Canada Germany and Japan.