London: A deal cutting import tariffs between the United States and United Kingdom, signed earlier this month, came into effect on Monday, giving British carmakers preferential access to the world's biggest consumer market. According to Kuwait News Agency, the British Department for Business and Trade quoted Prime Minister Keir Starmer as stating, "Our historic trade deal with the United States delivers for British businesses and protects UK jobs. From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy." Business and Trade Secretary Jonathan Reynolds also mentioned that the deal is set to "protect jobs and support growth in some of our most vital sectors - and today, we're delivering on that promise for the UK's world-class automotive and aerospace industries." Under the new agreement, British car manufacturers can now export to the US at a significantly reduced 10 percent tariff rate, down from the previous 27.5 pe rcent, providing a competitive advantage over international competitors. Aerospace goods will also benefit from the removal of 10 percent tariffs, allowing the sectors to save hundreds of millions annually and safeguard thousands of jobs. In exchange for these reductions, the UK will eliminate tariffs on US beef and ethanol imports. This decision has raised concerns within the British bioethanol industry, which fears it will become uncompetitive. Despite these advancements, UK steel and aluminum exports remain subject to a 25 percent tariff. This rate could potentially increase to 50 percent if the UK and US do not reach a resolution by July 9. Both Prime Minister Starmer and President Trump have indicated their commitment to working towards zero percent tariffs on core steel products as previously agreed.
