The first batch of the UK-US tariff agreement has come into effect! UK cars will exclusively enjoy a 10% tariff rate when exporting to the US, while steel negotiations remain deadlocked.

Starting from Monday, British car manufacturers can enjoy a 10% tariff rate on exports to the United States - a significant reduction compared to the 25% tariffs previously imposed by Donald Trump on other countries. As the first batch of measures under the economic agreement reached between the US President and British Prime Minister Boris Johnson, this policy has officially taken effect. British aerospace companies such as Rolls Royce Holdings have also benefited from tariff reductions: tariffs on products including engines and aircraft components have been reduced from 10% to zero. However, the struggling steel industry in the UK has yet to see any reduction in tariffs - despite the UK previously announcing a zero tariff agreement, tariffs on related products still remain at 25%. In a statement, Johnson said, "From today, the UK's world-class automotive and aerospace industries will see a significant reduction in tariffs, these key industries are vital to our economy, and this move will provide them with protection." The UK Department for Business, Energy and Industrial Strategy pointed out that the UK is the only country that has reached such an agreement with the Trump administration, emphasizing that the agreement will save thousands of jobs. According to the new rules, the 10% tariff imposed by the US on British cars will apply to an annual quota of 100,000 vehicles - giving companies like Jaguar Land Rover a competitive edge over rivals from other countries, although the preferential rate is still higher than before Trump returned to office. It is worth noting that although the UK is the only country exempt from the 50% tariff imposed by the US on global steel, negotiations to cancel the existing 25% tariff have proven to be difficult, with key issues focusing on ownership and determining the origin of products. The failure to reach a zero tariff agreement on steel has also sounded alarm bells for other countries negotiating tariff reductions with the Trump administration. The UK Department for Business, Energy and Industrial Strategy stated that negotiations with the US to implement a zero tariff agreement on steel will continue, but no specific timeframe for reaching an agreement has been provided.