Business, Freight News


Trump opens the door a crack for UK exporters

[ May 9, 2025   //   ]

A US/UK trade deal, the first details of which were revealed on 8 May, has been cautiously welcomed by UK manufacturers and the freight industry.

It would allow the UK to export a quota of up to 100,000 cars – about the current level – to the US under a 10% duty instead of the 25% generally applied under Trump’s ‘Liberation Day’ round of tariff increases announced in April.

There would also be reduced tariffs on steel and aluminium from the UK.

Both countries have also agreed to allow quotas of up to 13,000 tonnes of beef from each other, as well as quotas for US-produced ethanol in the UK.

While good news for some UK industries, the much-hyped deal stops a long way short of a comprehensive roll-back of the 10% tariffs imposed on other UK exports.

The day after the trade deal was announced, IAG announced that it would buy 32 Boeing 787-10 aircraft from the US for British Airways, along with 21 Airbus planes for its other airlines on morning.

US commerce secretary Howard Lutnick was reported as saying that aircraft engines and other aeroplane parts would be excluded from tariffs as part of the trade deal.

Kevin O’Marah, chief research officer at trade advisory firm Zero100, said: “The UK/US trade deal is a win for both nations. For the US, it proves that deals work in the first place, which gives the administration a bit more credibility as it moves forward.”

He added that the implications for UK car makers were favourable: “Although a small total share of the US market, British-built cars will be competing in a US market that faces input cost problems with tariffs on other nations for US-made autos. Meanwhile, British car imports to the US will be minimally burdened with administrative costs.

Managing director of Hooper and Co International Trade Consultancy in Nuneaton, David Hooper, said the deal was welcome for steel, aluminium and automotive exporters but failed to resolve key issues.

The 100,000-vehicle quota is a ceiling, not a growth opportunity, he argued, adding: “This deal is certainly better than the alternative – but it’s still worse than six months ago and the lack of clarity on auto parts and services is a real concern.” 

Logistics UK head of trade and devolved policy Nichola Mallon said the logistics sector welcomed the agreement in principle “but awaits the detail with interest”, adding: “After so much discussion and uncertainty around our trading relationship with the US, our members will appreciate the clarity and greater certainty that the agreement should provide. Businesses have been unsettled by the lack of clarity and consistency provided for traders since tariffs were announced: hopefully the agreement will lead to a period of greater stability.” Two days earlier, on 6 May, the UK and India also agreed a trade deal. It would reduce tariffs in India on a range of UK-made goods including spirits, aerospace, medical devices, cosmetics electrical goods and medical devices, foodstuffs and luxury cars.

In return the UK would cut tariffs onIndian clothing and footwear, cars, foodstuffs and jewellery and gems.