President Donald Trump has confirmed that he will be cutting the 27.5 per cent tariff on vehicle imports from the UK to just 10 per cent in a major trade announcement.
Speaking in the White House this afternoon, President Trump outlined that the US would be reducing auto tariffs on the United Kingdom down to just 10 per cent.
US Secretary of Commerce Howard Lutnick confirmed that the UK could send 100,000 cars to the US at a tariff rate of just 10 per cent.
He said this would protect American jobs and back British industries at a testing time for industries across the country.
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Donald Trump and Keir Starmer announced changes to the automotive tariffs
PA/GB NEWS
Speaking at the Jaguar Land Rover factory, Keir Starmer stated that the quota of 100,000 cars is "not fixed" and could be increased to further protect British businesses.
Cars are the single largest commodity exported from the UK to the US, worth a total value of £9billion, with 102,000 being sent to the US last year.
The new tariffs will save "hundreds of million of pounds a year" for Jaguar Land Rover since the US is one of its largest trade partners.
Adrian Mardell, CEO of Jaguar Land Rover, said: "The car industry is vital to the UK's economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports.
Jaguar Land Rover previously paused deliveries to the US after President Trump's initial tariff announcement
GETTY"We would like to thank the UK and US Governments for agreeing this deal at pace and look forward to continued engagement over the coming months."
Sir Keir Starmer added that the "historic deal" would put Britain at the front of the queue, adding that the special relationship between the two countries remains a force for economic and national security.
Starmer spoke on the phone with President Donald Trump this afternoon as the Prime Minister prepares to host a press conference at the Jaguar Land Rover factory in Halewood, West Midlands, later today.
Keir Starmer remarked that it was "fantastic" to visit the JLR factory again after launching updates to the Zero Emission Vehicle (ZEV) mandate in April.
The Prime Minister added that he was pleased to be able to look Adrian Mardell and JLR workers in the eye to confirm that he had followed through with his pledge to protect the British automotive manufacturing industry.
He continued, saying: "My Government is determined to go further and faster to strengthen the UK’s economy, putting more money in working people’s pockets as part of our Plan for Change."
Business and Trade Secretary Jonathan Reynolds said he was "delighted" at the outcome of the negotiations which will protect industries and cut costs for motorists.
President Trump confirmed that the final details would be confirmed in the coming weeks, adding that it was "so good" for both countries.
Donald Trump has made tariffs the focus of his economic agenda REUTERSThe tariffs were first introduced at the start of April, with the Society of Motor Manufacturers and Traders (SMMT) describing it as "deeply disappointing and potentially damaging" for the UK.
Mike Hawes, the chief executive of the SMMT, warned that the tariff costs could not be absorbed by manufacturers, seriously impacting UK producers.
He remained confident that a deal could be reached, although the tariffs represented "yet another challenge to a sector already facing multiple headwinds".
