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| UK-US tariff deal: Cars, steel and beef - what you need to know | UK-US tariff deal: Cars, steel and beef - what you need to know |
| (31 minutes later) | |
| The UK and the US have reached a deal over tariffs on some goods traded between the countries. | |
| President Donald Trump's blanket 10% tariffs on imports from countries around the world remains in place and still applies to most UK goods entering the US. | |
| But the deal has reduced or removed tariffs on some of the UK's exports, including cars, steel and aluminium. | But the deal has reduced or removed tariffs on some of the UK's exports, including cars, steel and aluminium. |
| Here's an at-a-glance look at what's in the deal. | Here's an at-a-glance look at what's in the deal. |
| This isn't a trade deal | This isn't a trade deal |
| Trump declared on social media this announcement would be a "major trade deal" - it's not. | |
| He does not have the authority to sign the type of free-trade agreement India and the UK finalised earlier this week - this lies with Congress. | He does not have the authority to sign the type of free-trade agreement India and the UK finalised earlier this week - this lies with Congress. |
| Congress would need to approve a trade agreement, which would take longer than the 90-day pause in place on some of Trump's tariffs. | Congress would need to approve a trade agreement, which would take longer than the 90-day pause in place on some of Trump's tariffs. |
| This is an agreement which has reversed or cut some of those tariffs on specific goods. | This is an agreement which has reversed or cut some of those tariffs on specific goods. |
| What was announced today is only the bare bones of a narrow agreement. | What was announced today is only the bare bones of a narrow agreement. |
| There will be months of negotiations and legal paperwork to follow. | There will be months of negotiations and legal paperwork to follow. |
| Car tariffs cut to 10% | Car tariffs cut to 10% |
| Trump had placed import taxes of 25% on cars and car parts coming into the US on top of the existing 2.5%. | Trump had placed import taxes of 25% on cars and car parts coming into the US on top of the existing 2.5%. |
| This has been cut to 10% for a maximum of 100,000 UK cars, which matches the number of cars the UK exported last year. | This has been cut to 10% for a maximum of 100,000 UK cars, which matches the number of cars the UK exported last year. |
| But any cars exported above that 100,000 will be subject to a 27.5% import tax. | But any cars exported above that 100,000 will be subject to a 27.5% import tax. |
| Cars are the UK's biggest export to the US - worth about £9bn last year. | |
| Car industry leaders have told the BBC the quota could effectively put a ceiling on the number they can export competitively. | Car industry leaders have told the BBC the quota could effectively put a ceiling on the number they can export competitively. |
| The UK currently imposes a 10% on US car imports, but it is not yet clear if there had been any change to this. | The UK currently imposes a 10% on US car imports, but it is not yet clear if there had been any change to this. |
| The US has previously demanded the import tax be cut to 2.5%, and Chancellor Rachel Reeves has indicated she is open to such a cut. | The US has previously demanded the import tax be cut to 2.5%, and Chancellor Rachel Reeves has indicated she is open to such a cut. |
| Trump also announced that Rolls Royce engines and plane parts will be able to be exported from the UK to the US tariff-free. | |
| He also said the UK was buying $10bn worth of Boeing planes from the US. | He also said the UK was buying $10bn worth of Boeing planes from the US. |
| No tariffs on steel and aluminium | No tariffs on steel and aluminium |
| A 25% tariff on steel and aluminium imports into the US that came into effect in March has been scrapped as part of this deal. | A 25% tariff on steel and aluminium imports into the US that came into effect in March has been scrapped as part of this deal. |
| This is huge news for firms such as British Steel which was brought under government control as it struggled to stay operational. | |
| The UK exports a relatively small amount of steel and aluminium to the US, around £700m in total. | The UK exports a relatively small amount of steel and aluminium to the US, around £700m in total. |
| However the tariffs also cover products made with steel and aluminium, including things such as gym equipment, furniture and machinery. | However the tariffs also cover products made with steel and aluminium, including things such as gym equipment, furniture and machinery. |
| These are worth much more, about £2.2bn, or about 5% of UK exports to the US last year. | These are worth much more, about £2.2bn, or about 5% of UK exports to the US last year. |
| It is not yet clear whether the scrapping of tariffs will apply to steel derivative products and whether only steel melted and poured in the UK will benefit. | |
| Pharmaceuticals still the big unknown | Pharmaceuticals still the big unknown |
| What will be agreed on pharmaceuticals is still unknown. | What will be agreed on pharmaceuticals is still unknown. |
| "Work will continue on the remaining sectors – such as pharmaceuticals and remaining reciprocal tariffs," a statement from the UK government said. | "Work will continue on the remaining sectors – such as pharmaceuticals and remaining reciprocal tariffs," a statement from the UK government said. |
| Most countries, including the US, imposed few or no tariffs on finished drugs, as part of an agreement aimed at keeping medicines affordable. | Most countries, including the US, imposed few or no tariffs on finished drugs, as part of an agreement aimed at keeping medicines affordable. |
| Pharmaceuticals are a major export for the UK when it comes to US trade – last year sales of medicinal and pharmaceutical products were worth £6.6bn ($8.76bn) making it the UK's second-biggest export to the US. | Pharmaceuticals are a major export for the UK when it comes to US trade – last year sales of medicinal and pharmaceutical products were worth £6.6bn ($8.76bn) making it the UK's second-biggest export to the US. |
| It's also America's fourth biggest export to the UK, valued at £4bn ($5.3bn) last year. | It's also America's fourth biggest export to the UK, valued at £4bn ($5.3bn) last year. |
| The president has not announced any trade restrictions on medicines yet. | The president has not announced any trade restrictions on medicines yet. |
| FOLLOW LIVE: US and UK to announce deal to reduce tariffs today | FOLLOW LIVE: US and UK to announce deal to reduce tariffs today |
| QUICK GUIDE: What tariffs has Trump announced and why? | QUICK GUIDE: What tariffs has Trump announced and why? |
| ANALYSIS: Trump deal is a significant achievement for Starmer | ANALYSIS: Trump deal is a significant achievement for Starmer |
| No change on digital services tax | No change on digital services tax |
| There was no change to the UK's 2% digital services tax on US firms in this deal, despite reports there could be. | There was no change to the UK's 2% digital services tax on US firms in this deal, despite reports there could be. |
| Businesses that run social media, search engines or online marketplaces pay this tax which applies to revenues derived from UK users. | Businesses that run social media, search engines or online marketplaces pay this tax which applies to revenues derived from UK users. |
| Firms only have to pay it if they raise more than £500m in global revenues and £25m from UK users annually. | Firms only have to pay it if they raise more than £500m in global revenues and £25m from UK users annually. |
| But this is a threshold easily met by US tech giants like Meta, Google, Apple. | But this is a threshold easily met by US tech giants like Meta, Google, Apple. |
| The UK reportedly netted nearly £360m from American tech firms via the tax in its first year. | The UK reportedly netted nearly £360m from American tech firms via the tax in its first year. |
| Instead of any change to the digital services tax the UK and US had "agreed to work on a digital trade deal", the UK government said. | Instead of any change to the digital services tax the UK and US had "agreed to work on a digital trade deal", the UK government said. |
| It said this would "strip back paperwork for British firms trying to export to the US – opening the UK up to a huge market that will put rocket boosters on the UK economy". | It said this would "strip back paperwork for British firms trying to export to the US – opening the UK up to a huge market that will put rocket boosters on the UK economy". |
| No drop to food standards | No drop to food standards |
| The UK has removed tariffs on American beef and other agricultural products, Trump said. | |
| UK farmers have also been given a tariff free quota for 13,000 metric tonnes of exports, which trade ministers said was the "first time" British farmers had been given this kind of deal. | UK farmers have also been given a tariff free quota for 13,000 metric tonnes of exports, which trade ministers said was the "first time" British farmers had been given this kind of deal. |
| There will be no weakening of UK food standards on imports, the UK government statement said. | There will be no weakening of UK food standards on imports, the UK government statement said. |
| Many American farmers use growth hormones as a standard part of their beef production, something that was banned in the UK and the European Union in the 1980s. | Many American farmers use growth hormones as a standard part of their beef production, something that was banned in the UK and the European Union in the 1980s. |
| The US has previously pushed for a relaxation of rules for its agricultural products, including beef from cattle that have been given growth hormones. | The US has previously pushed for a relaxation of rules for its agricultural products, including beef from cattle that have been given growth hormones. |
| This is an area where the UK has chosen alignment with EU - and the forthcoming "Brexit reset" with the EU - over the US. | This is an area where the UK has chosen alignment with EU - and the forthcoming "Brexit reset" with the EU - over the US. |
| The tariff on ethanol which is used to produce beer coming into the UK from the US has also been scrapped. | The tariff on ethanol which is used to produce beer coming into the UK from the US has also been scrapped. |
| "They'll also be fast tracking American goods through their customs process, so our exports go to a very, very quick form of approval, and there won't be any red tape," Trump said. | "They'll also be fast tracking American goods through their customs process, so our exports go to a very, very quick form of approval, and there won't be any red tape," Trump said. |