US Tariff Relief For Automotives And Jet Engines

Reacting to news that the US President has signed an Executive Order on the trade deal with the UK, William Bain, BCC Head of Trade Policy, said:

“News that the trade deal with the US has been agreed on automotives and jet engines will be music to the ears of affected sectors.

“They are desperate for tariff relief and lower costs, and this new Executive Order should deliver that.

“For the automotive sector, operating under 27.5 percent tariffs on sales to the US over the past two months has been tough. A reduction to a 10 percent levy from the end of June will help order books, investment and jobs.

“However, for steel and aluminium firms the wait goes on. They have faced 25% US tariffs for the past three months and are still awaiting the resolution of outstanding issues on the new US quotas.

“But the deal does also implement zero tariff arrangements on UK Rolls Royce jet engines by the end of this month - a vital part of aerospace supply chains in the US.

“Both Governments should now build upon this current deal to secure an agreement on digital trade to make trans-Atlantic trade cheaper, speedier and more efficient.

“We also need to make the case for further tariff relief in other goods sectors affected by the US reciprocal tariffs, from clothing to food and drink.”