Overview

• The UK and US finalized a trade deal reducing tariffs on key aerospace and automotive exports, following a phone call between President Trump and Prime Minister Starmer.
• Rolls-Royce engines and plane parts will now be exempt from US tariffs, spurring a 4.5% rise in the company’s share price to 783.46p, surpassing pre-tariff levels.
• The deal cuts US car import tariffs from 27.5% to 10% on the first 100,000 British-made vehicles annually, benefiting manufacturers like Aston Martin, Jaguar Land Rover, and Bentley.
• Aston Martin shares surged approximately 14%, marking a recovery from the steep losses caused by April’s tariff imposition.
• The agreement also sets the stage for a future UK-US technology partnership in aerospace, signaling deeper industrial collaboration.