Thu, 08 May 2025

Thu, 08 May 2025 What is in the UK-US tariff deal?

The two nations have announced a deal to reduce tariffs - here's what you need to know.

* Tariffs on cars: Reduced from 25% + 2.5% to 10% for up to 100,000 UK cars exported per year (matching last year's export total) + Any cars above the quota will be subject to a 27.5% import tax
* Steel and aluminium tariffs: Removed in full
* US has not removed its existing 2.5% tariff on UK car imports
* No change to UK's 10% tariff on US car imports (yet)
* Rolls-Royce engines and plane parts can be exported from the UK to the US without tariffs
* £10bn worth of Boeing planes to be imported by the UK from the US
* Tariffs on steel derivative products still unclear
* No agreement on pharmaceuticals yet, work continues on reciprocal tariffs
* Digital services tax: No change, threshold remains at £500m global revenue and £25m from UK users
* "Agreed to work on a digital trade deal" for striping back paperwork for British firms exporting to the US
* UK has removed tariffs on American beef and other agricultural products
* 13,000 metric tonnes of UK farm exports given tariff-free quota
* No weakening of UK food standards on imports
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