Agreement reached
A small windfall for the British auto industry: the U.S.’s increased car import tariff of 25 percent will be partially reduced.
British Prime Minister Keir Starmer can return home with good news for the British auto industry after a visit to the U.S. The Americans earlier this year introduced an import tariff of 25 percent for foreign cars, but that no longer applies to British cars. At least, for 100,000 cars per year. For that number, a levy of 10 percent will apply, above that, it will be 25 percent again.
All in all, it remains a less favorable situation for the British than before Donald Trump became president. Then there was only a levy of 2.5 percent on British cars. Still, it’s a boost for Starmer. Together with Trump, he presented the amended trade agreement between the UK and the US on Monday. According to the White House, it also states that the British ‘reduce or eliminate numerous barriers that unfairly discriminate against American products, harm the manufacturing base of the United States, and threaten the national security of the United States.’ You scratch my back, I’ll scratch yours.