US-UK agreement to reduce tariffs on auto and aircraft parts takes effect

Published: Jun 30, 2025 14:57

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A trade agreement between the US and the UK to reduce tariffs on British car and aircraft parts has come into effect.
The UK government stated on Monday that a trade agreement signed by US President Trump and UK Prime Minister Stammer to reduce some tariffs on goods imported from the UK had come into effect. The statement reiterated details announced earlier in June, stating that British car manufacturers can now export cars to the US under a 10% tariff quota, down from the previous 27.5% tariff. Meanwhile, the current 10% tariff imposed by the US on goods such as British aircraft engines and aircraft parts has been completely eliminated. However, the issue of steel and aluminum tariffs remains unresolved. The UK avoided the high steel and aluminum tariffs of up to 50% imposed by the US on other countries earlier this month, but unless an agreement is reached, the UK may face higher tariffs starting from July 9. The UK added in the statement, "We will continue to move forward and make progress in implementing the 0% tariff on core steel products as agreed.

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