A new trade deal between the US and the UK has officially come into effect as of June 30, 2025, significantly reducing tariffs on various imports.

Under this agreement, tariffs on UK car exports to the US have been slashed from 27.5% to 10%, while tariffs on aerospace goods, including engines and aircraft parts, have been eliminated entirely.

The deal was initially announced in May 2025, following a joint press conference between U.S. President Donald Trump and British Prime Minister Keir Starmer, amidst concerns over delays in its implementation.

Starmer praised the agreement for its potential to support British businesses and protect jobs, while Trump described it as a 'great' deal.

Despite the positive outlook, key industry figures, including Tom Bradshaw from the National Farmers’ Union, have raised concerns about the agricultural sector being used as leverage in trade negotiations.

The agreement is expected to boost British auto and aerospace exports, although it poses challenges for steelmakers who are still facing a tight deadline for long-term tariff relief.

While Britain has avoided the 50% tariffs on steel and aluminum imposed on other countries, negotiations are ongoing to achieve 0% tariffs on core steel products.

Business and Trade Secretary Jonathan Reynolds emphasized that the deal will save hundreds of millions of pounds annually and safeguard thousands of jobs in the UK.

Industry leaders from the aerospace and automotive sectors have expressed gratitude for the trade deal, highlighting its significance for UK exporters.

In addition to automotive and aerospace, the deal includes the removal of a 20% tariff on US beef imports to the UK and a 19% tariff on US ethanol imports, which has raised concerns within the UK bioethanol industry.

UK car manufacturers, including Aston Martin, are preparing to resume shipments of luxury vehicles following a significant pause due to high tariffs.

However, the deal includes a quota of 100,000 cars per year subject to the reduced tariff, which is lower than last year's export numbers, posing challenges for growth in the sector.