A leading automobile company has expressed approval for the recently agreed upon trade agreement between the UK and US, stating that it will aid in safeguarding employment positions.
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 increased under former U.S. President Donald Trump’s administration.
Based in Coventry, Jaguar Land Rover (JLR) has facilities in Solihull and Wolverhampton. The company halted shipments to the U.S. but resumed these deliveries last week.
Adrian Mardell, CEO of JLR, stated: “We enthusiastically embrace this agreement, providing increased stability for our industry and the communities it benefits.”
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 U.S. has never entered into this kind of agreement with another nation before us,” he stated. “Given today’s climate of worldwide insecurity and volatility, this holds great significance.
Steve Rigby, who serves as the CEO of the Rigby Group—a tech investment firm located in the West Midlands—has likewise expressed his approval regarding this development.
Mr. Rigby recently compiled a report detailing the prolonged effects of increased tariffs, indicating that these would present a “significant structural threat” to both the regional and national economies.
He stated, ‘This agreement takes us out of the critical area,’ following the recent announcement. ‘It arrives timely for both the West Midlands economy and the United Kingdom’s automotive sector.’
This simply reduces some strain within the system as we require allowing our manufacturers to shift towards producing electric vehicles.
In addition to Jaguar Land Rover (JLR), the West Midlands hosts several automotive companies such as Morgan in Malvern, Bentley in Crewe, and Aston Martin located in the village of Gaydon within Warwickshire.
Prof David Bailey, an economist and expert on the automotive industry at Birmingham Business School, said cars were the UK’s number one export to the US, and had previously warned the West Midlands would be
the region worst hit
by the tariffs.
He mentioned, ‘The US stands as JLR’s top export destination.’ However, Trump’s tariffs on vehicle imports have dealt a significant setback to Jaguar Land Rover and 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 regarding beef,” enabling UK producers to export up to 13,000 metric tons of beef annually to the U.S., with similar terms extended to American exporters into the British market.
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, questioned the possible effects of an agreement on food standards, highlighting worries regarding “chickens treated with chlorine, cattle raised with hormones, and naturally, pigs given antibiotics.”
The government subsequently affirmed that “UK food standards for imported products 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, as has the tariff on US ethanol entering the UK.
However, Trump’s so-called “baseline tariff” of 10%, applied to all imported goods globally, remains in place for the UK.
- The US has eliminated tariffs on British steel and aluminum imports and reduced the auto tariff to 10% as Trump and Starmer announce their agreement.
- Automotive companies consider responses to tariffs as Jaguar Land Rover suspends vehicle shipments to the U.S.
- Automaker confronts ‘major transformation’ due to U.S. tariffs
Related internet links
- Department of Commerce and Trade