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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 |
| (about 4 hours later) | |
| The UK and the US have reached a deal over tariffs on some goods traded between the countries. | 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 still applies to most UK goods entering the US. | President Donald Trump's blanket 10% tariffs on imports from countries around the world 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. | 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. |
| It is only the bare bones of a narrow agreement, there will be months of negotiations and legal paperwork to follow. | It is only the bare bones of a narrow agreement, 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 quota will be subject to a 27.5% import tax. | But any cars exported above that quota will be subject to a 27.5% import tax. |
| Cars are the UK's biggest export to the US - worth about £9bn last year. | Cars are the UK's biggest export to the US - worth about £9bn last year. |
| Jaguar Land Rover, which exports almost a quarter of its cars to the US, said the deal "secures greater certainty for our sector". | Jaguar Land Rover, which exports almost a quarter of its cars to the US, said the deal "secures greater certainty for our sector". |
| But car industry leaders have told the BBC the quota could effectively put a ceiling on the number they can export competitively. | But 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% levy on US car imports, but it is not clear if there is any change to this. | The UK currently imposes a 10% levy on US car imports, but it is not clear if there is any change to this. |
| The US has previously demanded the tax be cut to 2.5%, and Chancellor Rachel Reeves had indicated she is open to such a cut. | The US has previously demanded the tax be cut to 2.5%, and Chancellor Rachel Reeves had 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. | Trump also announced that Rolls-Royce engines and plane parts will be able to be exported from the UK to the US tariff-free. |
| 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. | A 25% tariff on steel and aluminium imports into the US that came into effect in March has been scrapped. |
| This is good news for firms such as British Steel which was brought under government control as it struggled to stay operational. | This is good news for firms such as British Steel which was brought under government control as it struggled to stay operational. |
| However, the White House said it would impose a quota on the "most favoured nation rates for UK steel and aluminium and certain derivative steel and aluminium products." | However, the White House said it would impose a quota on the "most favoured nation rates for UK steel and aluminium and certain derivative steel and aluminium products." |
| It is currently unclear how much of these products the UK will be able to export to the US under this quota system without paying more. | It is currently unclear how much of these products the UK will be able to export to the US under this quota system without paying more. |
| It is also unclear whether the scrapping of tariffs will apply to steel derivative products and whether only steel melted and poured in the UK will benefit. | It is also unclear whether the scrapping of tariffs will apply to steel derivative products and whether only steel melted and poured in the UK will benefit. |
| The UK exports a relatively small amount of steel and aluminium to the US, about £700m in total. | The UK exports a relatively small amount of steel and aluminium to the US, about £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. |
| Industry body Steel UK said there were "a number hoops to jump through before the UK steel sector can see the benefits of this deal". | Industry body Steel UK said there were "a number hoops to jump through before the UK steel sector can see the benefits of this deal". |
| It said firms needed to know what supply chain conditions need to be met, what the quotas are and when they take effect. | It said firms needed to know what supply chain conditions need to be met, what the quotas are and when they take effect. |
| Pharmaceuticals still the big unknown | Pharmaceuticals still the big unknown |
| What will be agreed on pharmaceuticals is still unknown with the UK saying work would continue on this and the remaining reciprocal tariffs. | What will be agreed on pharmaceuticals is still unknown with the UK saying work would continue on this and the remaining reciprocal tariffs. |
| The US said both countries would "promptly negotiate significantly preferential treatment outcomes on pharmaceuticals". | The US said both countries would "promptly negotiate significantly preferential treatment outcomes on pharmaceuticals". |
| Pharmaceuticals are a major export for the UK when it comes to US trade – last year sales of these products were worth £6.6bn 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 these products were worth £6.6bn 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 last year. | It's also America's fourth biggest export to the UK, valued at £4bn last year. |
| 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. |
| The president has not announced any trade restrictions on medicines yet. | The president has not announced any trade restrictions on medicines yet. |
| 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 in this deal and it appears to be a sticking point. | There was no change to the UK's 2% digital services tax in this deal and it appears to be a sticking point. |
| Businesses that run social media, search engines or online marketplaces have to pay it if they receive more than £500m in global revenues and £25m from UK users annually. | Businesses that run social media, search engines or online marketplaces have to pay it if they receive more than £500m in global revenues and £25m from UK users annually. |
| But this threshold is easily met by US tech giants like Meta, Google, Apple. | But this threshold is 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. |
| The UK government said it had "agreed to work on a digital trade deal". | The UK government said it had "agreed to work on a digital trade deal". |
| But the US government said it was "disappointed that the UK was unwilling to agree to fully address the tax. | But the US government said it was "disappointed that the UK was unwilling to agree to fully address the tax. |
| "It is discriminatory, unjustified, and should be removed promptly," it said. | "It is discriminatory, unjustified, and should be removed promptly," it said. |
| No drop to food standards | No drop to food standards |
| US beef exports to the UK had been subject to a 20% tariff within a quota of 1,000 metric tons. The UK has scrapped this tariff and raised the quota to 13,000 metric tonnes, according to the White House document. | US beef exports to the UK had been subject to a 20% tariff within a quota of 1,000 metric tons. The UK has scrapped this tariff and raised the quota to 13,000 metric tonnes, according to the White House document. |
| In return, the UK has been given the same quota at a lower rate in line with other countries. | |
| Crucially, there will be no weakening of UK food standards on imports as part of this deal, the UK government statement said, insisting that American hormone-treated meat will not seep onto the UK market. | |
| 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 coming into the UK from the US has also been scrapped. | The tariff on ethanol coming into the UK from the US has also been scrapped. |
| The National Farmers Union said the inclusion of "a significant volume of bioethanol [a renewable fuel made from crops] in the deal raises concerns for British arable farmers". | The National Farmers Union said the inclusion of "a significant volume of bioethanol [a renewable fuel made from crops] in the deal raises concerns for British arable farmers". |