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US to Begin Lifting Tariffs on British Cars After London Meeting

Implementation depends on UK regulatory amendments before the July 9 exemption expires

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Overview

  • UK Trade Secretary Jonathan Reynolds met US Commerce Secretary Howard Lutnick in London to press for activation of the trade deal announced by President Trump and Prime Minister Starmer last month.
  • Officials are prioritising a reduction of car tariffs first, as cutting duties on steel and aluminium involves more complex rules of origin and quota arrangements.
  • Both governments must finalise their legal frameworks, with the UK passing regulatory amendments through Parliament and the US creating mechanisms to enforce steel, aluminium and vehicle quotas.
  • The UK remains exempt from President Trump’s 50% increase on steel and aluminium tariffs until July 9, provided it complies with the terms of the preliminary agreement.
  • Key unresolved issues include the method for allocating the 100,000-car annual quota and concerns that origin requirements could exclude Tata Steel from the deal.