The classic car industry remains concerned about the future of the sector following the UK-US trade deal which saw tariffs cut for the export of vehicles.
Prime Minister Keir Starmer and US President Donald Trump unveiled the terms of a landmark economic agreement on Thursday which aimed to address damaging tariffs on key industries, including vehicles.
Speaking at the Jaguar Land Rover factory in the West Midlands, Starmer said the trade deal would save thousands of jobs across the country in the automotive and steel industries.
As part of the deal, the United States has created a quota of 100,000 vehicles for UK automotive imports at a tariff rate of 10 per cent. The same will apply to auto parts for these vehicles.
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The classic car industry has warned that the new UK-US trade deal could still impact the sector
GETTY/REUTERS
This is down from an effective tariff rate of 27.5 per cent, with the Prime Minister hailing the deal as a "historic" agreement with the US.
The USA is the second biggest importer of British cars after the European Union, with a total of 102,000 exported to the US last year.
Despite the quota being below the total number of exported vehicles last year, the Prime Minister stated the quota is "not fixed" and could be increased in the future.
Jaguar Land Rover said the reduction of tariff rates would save hundreds of millions a year for the company alone and protect several other British companies.
Keir Starmer said the new trade deal would protect thousands of jobs across the UK
REUTERS
Despite the optimism from luxury car manufacturers, the classic car industry has warned that uncertainty remains following the trade deal.
The Historic and Classic Vehicles Alliance (HCVA) warns that the UK automotive parts supply sector would still be impacted regardless of the new tariff terms.
The organisation warn that certain car parts, including those for historic vehicles, will be one of the only remaining UK exports still caught by the 25 per cent tariff rate.
Dale Keller, CEO of the HCVA, said: "UK historic vehicles have long been popular with enthusiasts in the USA and keeping these vehicles on the road depends on importing parts from the UK’s specialist supply chain.
"By applying the automotive tariff relief through a quota mechanism on 100,000 vehicles, the trade agreement has left many in the parts sector high and dry from access to lower tariffs as it stands.
"These pre-existing and replacement parts for historic vehicles have no reasonable prospect of being recreated as newly manufactured in the USA and surely should fall outside the US policy objectives."
Keller confirmed that the HCVA would continue to urge the UK Government to seek more favourable terms in its ongoing negotiations.
The HCVA said it would directly look to ensure the specialist parts supply chain across the country remains viable for the future of the industry.
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The classic car industry had previously warned about the impact of tariffs on the sector
CAR AND CLASSICIt previously warned that the United States would not be able to recreate classic cars given the lack of available parts in the US.
