The Impact of the US-UK Trade Deal on UK Manufacturers

2 mins read

The US and UK have agreed to an economic deal that will save many industries, including British car makers and the steel sector.

Creds: FreePik
Creds: FreePik

The US has agreed to reduce import taxes on a set number of British cars and allow some steel and aluminium into the country tariff-free. The deal has seen tax imports on cars reduce from the initially agreed 25% to 10% for 100,000 cars a year. This will support carmakers including JLR and Rolls Royce, but analysts said this could also limit growth in the future.

Reduced Import Taxes for British Cars

Earlier this year, President Trump raised tariffs to 25% on steel and aluminium – but this has been slashed to an undisclosed percentage. In addition, import of up to 13,000 metric tonnes of beef has been agreed without tariffs. The US said the change would significantly expand its sales of beef to the UK, which had previously faced 20% duties and were capped at 1,000 metric tonnes.

Beef and Agricultural Exports Expansion 

The US also said it was creating a $5bn opportunity for exports, including $700m in ethanol and $250m in other agricultural products. The new deal will leave a 10% duty in place on most goods from the UK and analysts have said the deal will not meaningfully alter the terms of trade between the US and UK. A formal deal is yet to be signed.

Industry Leaders' Views on the Trade Deal 

With trade tensions seemingly declining between the two countries, how have industry leaders responded to the news?

Andrei Danescu, CEO, Dexory said: “Today’s US-UK trade deal is a welcome headline - with tariff relief for vital exports and progress on digital services taxes, it’s a step forward for transatlantic trade. But sadly, headlines don’t build resilience! Even positive shifts in trade policy can create ripple effects across supply chains. For leaders in logistics and operations, this is yet another reminder that resilience and agility isn’t optional - it’s the foundation for long-term competitiveness in an increasingly unpredictable world and tougher market!"

He continues: "Years of just-in-time logic in logistics, geographic concentration and fragile sourcing strategies have left entire industries exposed. Each new shift – whether it’s a tariff, a pandemic, or a trade deal – reveals the same truth: too many operations are built for the moment, not for the long haul. What’s needed now is not a patch, but a full rethinking of how supply chains are designed, with flexibility, diversification and resilience baked in from the foundation. I believe the real test for business leaders isn’t how quickly they can reshuffle in response to the latest changes, it’s whether they’ve built an operation that won’t need to react to every headline.”

Rethinking Supply Chain Strategies 

Stephen Morley, President of the Confederation of British Metalforming said: “The Confederation of British Metalforming (CBM) welcomes the new US-UK trade deal as a significant step forward for UK manufacturers, particularly those operating in the automotive, aerospace, steel and aluminium sectors. This deal provides much-needed clarity and improved access to a critical market for CBM members, many of whom are world-class suppliers into transatlantic automotive and industrial supply chains.

He continues: "We remain committed to supporting our members as they take advantage of this agreement and urge continued cooperation between both governments to ensure regulatory alignment and simplified customs procedures that have been mentioned all progress smoothly and at pace. This is a positive signal for manufacturing at a time when confidence and international competitiveness are being tested by a wave of geopolitical pressures.”

This is a developing story. We'll give updates on the situation as we learn more. 13:32am 09/05/2025