A major car manufacturer has welcomed a trade deal struck between the UK and US, saying it will help protect jobs.
Prime Minister Sir Keir Starmer announced a new deal that reduces tariffs on most UK car exports to 10% from the previous rate of 27.5%, which was imposed by former U.S. President Donald Trump.
Jaguar Land Rover (JLR), based in Coventry and with sites in Solihull and Wolverhampton, paused exports to the US in response – although restarted them last week.
Adrian Mardell, JLR’s CEO, stated: “We enthusiastically embrace this agreement, as it provides increased stability for our industry and the communities we support.”
He mentioned that the automobile sector supported 250,000 jobs and was crucial for the UK’s economic well-being.
The decreased tax rate will be applicable to 100,000 automobiles annually. In the previous year, 101,000 vehicles were shipped to the United States.
During his visit to JLR’s Solihull facility, Sir Keir referred to it as a historical agreement.
The United States has never entered into such an agreement with another nation before us,” he stated. “Given today’s climate of worldwide uncertainty and unrest, this holds significant value.
The CEO of the Rigby Group, a tech investment firm located in the West Midlands and headed by Steve Rigby, has similarly expressed his approval regarding this development.
Mr. Rigby recently compiled a report detailing the prolonged effects of increased tariffs, indicating that these measures would present a “fundamental threat” to both the regional and national economies.
He stated, ‘This agreement takes us out of the critical area,’ following the most recent announcement. ‘It arrives promptly for the economy of the West Midlands and the automobile sector in the UK.’
“This just takes some pressure out of the system at a time when we need to let our manufacturers transition to electric vehicles.”
In addition to Jaguar Land Rover (JLR), the West Midlands is also home to various automotive companies such as Morgan in Malvern, Bentley in Crewe, and Aston Martin located in the village of Gaydon within Warwickshire.
Professor David Bailey, an economics specialist and auto industry authority at Birmingham Business School, noted that automobiles ranked as the top British exports to the United States. He had earlier cautioned that the West Midlands region could face difficulties.
the region worst hit
by the tariffs.
He stated, ‘The US remains at the top of JLR’s list for exports.’ However, Trump’s tariff on vehicle imports has dealt a significant setback not only to them but also to other automobile exporters such as Aston Martin and Morgan.
This deal could be significantly impactful for JLR, the UK automotive industry, and the West Midlands region.
The UK government additionally reported securing an agreement for “mutual market access for beef,” enabling UK farmers to export up to 13,000 metric tons of beef to the U.S., with similar terms offered to American producers.
Just hours prior to the announcement, the issue of food standards was brought up in Parliament.
Mark Pritchard, the Conservative Member of Parliament representing The Wrekin in Shropshire, queried the possible effects of an agreement on food standards, voicing worries regarding “chickens treated with chlorine, cattle raised with hormones, and naturally antibiotics used in pork production.”
The government subsequently affirmed that “UK food import standards will not be compromised.”
One of several tariffs announced by Trump in February was the tax on automobiles, which impacted products coming into the U.S. from various nations around the globe.
The 25% tax applied to UK steel and aluminum imports into the US has been eliminated, and simultaneously, the tariff on US ethanol coming into the UK has been lifted.
However, Trump’s so-called “baseline tariff” of 10%, applied to all imported goods globally, remains in place for the UK.
More on this story
- The US has eliminated tariffs on British steel and aluminum imports and reduced the auto tariff to 10% as President Trump and Keir Starmer announce their agreement.
- Automakers consider responses to tariffs as Jaguar Land Rover suspends car shipments to the U.S.
- Automaker confronts ‘major transformation’ due to U.S. tariffs
Related internet links
- Department of Commerce and Trade
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