Overview

• The U.S.-U.K. provisional trade agreement allows up to 100,000 British vehicles to enter the U.S. annually at a reduced 10% tariff, while steel exports will be tariff-free.
• North American automakers and Canadian industry groups warn the deal undermines the integrated CUSMA auto sector, as vehicles with Canadian or Mexican content face higher tariffs.
• The American Automotive Policy Council criticized the agreement for making U.K. imports cheaper than vehicles partially made with U.S. parts in Canada or Mexico.
• White House Press Secretary Karoline Leavitt defended the deal, framing it as an incentive for automakers to increase U.S.-based production.
• The agreement remains preliminary, with negotiations ongoing, as concerns grow that similar deals with other countries could further disrupt the North American auto industry.