U.S.-UK Trade Deal Is A Very Good Thing for British Automakers

President Donald Trump recently met with British Prime Minister Keir Starmer, with the pair reaching an agreement that will reduce some of the tariffs’ impacts, especially on the country’s automakers. The new deal will help save jobs at Jaguar Land Rover, Rolls-Royce, Bentley, and others, as it significantly lowers tariffs on vehicles imported from Britain.

The agreement drops tariffs on British cars from 27.5 percent to 10 percent, a move praised by JLR executives. CEO Adrian Mardell said the automaker “warmly welcomed this deal, which secures greater certainty for our sector and the communities it supports.” British automakers can export up to 100,000 vehicles at the 10 percent rate, almost covering the 102,000 vehicles it sent to the U.S. last year.

While this is great news for JLR, the automaker still faces challenges. It builds some models, including the Discovery and Defender, at a plant in Slovakia, meaning they are still subjected to the 27.5 percent tariff. British metal imports will also get a break under the new agreement, potentially saving the industry from collapse.

Trump also seemed to tease a rollback of the tariffs placed on China, saying this morning on Truth Social that an “80% tariff on China seems right! Up to Scott B,” though Treasury Secretary Scott Bessent hasn’t yet announced a change in the China trade policy.

[Images: Land Rover, Rolls-Royce, Bentley]

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