UK-US trade deal shifts gear for automotive industry
Major automotive manufacturers have welcomed the UK-US trade deal, with Aston Martin and Rolls Royce share prices increasing.
Tariffs have been removed on British steel and aluminium, reducing them to zero and tariffs on cars will be cut from 27.5% to 10% for 100,000 vehicles every year.
JLR’s CEO Adrian Mardell has also backed the deal, saying it gives “greater certainty” for the sector and the 250,000 jobs it supports.
Richard Parker, Mayor of the West Midlands, said “nowhere is better placed to benefit than the West Midlands as our region exports more to the US than any other.
“We’re open for business and ready to lead the way”.
Speaking at a JLR factory to announce the trade deal, Sir Keir Starmer said: “This is a deal that will protect British businesses and save thousands of jobs in Britain, really important, skilled, well paid jobs. It will remove tariffs on British steel and aluminium, reducing them to zero. It will provide vital assurances for our life sciences sector, so important to our economy, and grant unprecedented market access for British farmers without compromising our high standards.
“In politics, what matters sometimes is who you have in your mind’s eye when you’re making these deals. Who do you have in your mind’s eye when you’re taking decisions? But what I took away from here last time [I was here] was you and the brilliant work that you do, and had you in my mind’s eye as we did that”.
Adrian Mardell, CEO of JLR said: “The car industry is vital to the UK’s economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports.
“We would like to thank the UK and US Governments for agreeing this deal at pace and look forward to continued engagement over the coming months.”
Steve Rigby, Co-CEO of Rigby Group, had released a report commissioned by Richard Parker, Mayor of the West Midlands, on the real concern over the longer-term impact of the US tariffs on the West Midlands.
He said: “This deal moves us out of the red zone – it comes just in time for the West Midlands economy and the UK’s car industry and reflects the government’s smart strategy in negotiations over recent months.
“The implications of ‘No deal’ would have been felt by the automotive sector within weeks, which makes securing a deal so quickly an extremely positive development. We now need to move ahead with the terms we have and make it a success.
“No concession on auto tariffs would have been detrimental to the West Midlands and dealt a massive blow to the UK’s economy, and now is the time to make it work.”
