London (AFP) – Britain’s auto sector on Tuesday welcomed news that the United States and UK have agreed to implement key parts of their tariff-cutting trade deal, as levies on steel remain. US President Donald Trump signed off on the first truce in his trade offensive on Monday, on the sidelines of the G7 summit in Canada. The agreement will slash tariffs on British carmakers by the end of June and remove them completely on British aerospace imports.
Britain, in return, has agreed to open its markets to US beef, other farm goods, and ethanol. “This is great news for the UK automotive industry, helping the sector avoid the severest level of tariffs and enabling many manufacturers to resume deliveries imminently,” said Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders.
Tariffs of 25 percent on the UK steel industry remain, however, despite a bilateral agreement in May to completely remove the levy for British aluminium. “We are still working at pace to make sure we can address the issue of tariffs for the steel industry,” British Transport Secretary Heidi Alexander told Sky News on Tuesday.
According to the Financial Times, talks have stalled because a significant portion of British steel is processed using imported materials. Trump in June increased tariffs on aluminium and steel imports to 50 percent from 25 percent for other key trading partners around the world.
© 2024 AFP
