UK launches historic US trade deal at Jaguar Land Rover manufacturing
The United Kingdom announces a significant trade agreement with the United States at the Tata Motors’ Jaguar Land Rover manufacturing facility. Days after confirming a landmark Free Trade Agreement with India, British Prime Minister Keir Starmer on Thursday selected a Tata Motors-owned Jaguar Land Rover factory in northern England to announce a significant trade deal with the US. After a conversation with President Donald Trump, Starmer spoke to JLR employees in Solihull to emphasize the “big win” for the automotive sector stemming from the reduction of car export tariffs from 27.5 percent to 10 percent.
This will pertain to a quota of 100,000 UK cars, nearly matching the total number Britain exported in the previous year. We are the first nation to establish such an agreement with the United States, and in a time characterized by global insecurity and instability, this is of paramount importance, stated Starmer. We are conveying a clear signal globally that Britain is receptive to commercial opportunities, having established trade agreements with India on Tuesday, followed by discussions with the US today, and actively seeking to enhance trade relations with additional partners, notably the EU, with a significant meeting scheduled for a week from Monday, he stated.
In addition to car manufacturers, the sectors identified by 10 Downing Street as poised to gain from the UK-US trade agreement encompass steel production and agriculture. The 25 percent steel tariffs are set to be eliminated, while UK farmers will benefit from reciprocal market access, allowing for a tariff-free quota of 13,000 metric tonnes of beef. Furthermore, the tariffs on ethanol, which is utilized in beer production, will be reduced to zero for the UK.
“I will approach negotiations in the same way I have approached negotiations with India and with President Trump to get to today’s deal,” Starmer stated. “During my meeting with Prime Minister Modi at the G20 in Brazil, we reached a consensus on the necessity for our teams to collaborate efficiently and respectfully. Similarly, our interactions with President Trump have followed this same professional approach…” Similarly, the EU is engaging in respectful negotiations concerning the upcoming summit scheduled for a week from Monday, he added.
Downing Street indicated that efforts will persist regarding the outstanding sectors, including pharmaceuticals and other reciprocal tariffs. The announcement underscored that, in a significant development, the US has consented to grant the UK preferential treatment regarding any additional tariffs that may be implemented as part of Section 232 investigations. The agreement paves the way for a prospective technology partnership between the UK and the US, enabling collaboration in critical sectors of advanced technology, including biotechnology, life sciences, quantum computing, nuclear fusion, aerospace, and space, as highlighted by Downing Street.
UK Business and Trade Secretary Jonathan Reynolds attributed the successful deal, which reduces tariffs and costs for businesses, to the UK negotiating team’s composed strategy and proactive engagement. Enterprises nationwide will appreciate the effectiveness of our strategy; however, this represents merely the initial phase. We anticipate enhancing our trading relationship with the US via a broader economic agreement, he stated.
The Digital Services Tax is maintained in the agreement, with both nations committing to collaborate on a digital trade arrangement aimed at reducing bureaucratic hurdles for British companies seeking to export to the United States. “The agreement encompasses substantial enhancements in market access for American exports, particularly within the agricultural sector, significantly expanding opportunities for American beef, ethanol, and nearly all products generated by our esteemed farmers,” stated Trump from the Oval Office at the White House. The US President characterized the UK as “one of the greatest” allies of the US, asserting that the country “is right at the top they’re the first one we’re talking about”.
