UK and US Sign Trade Agreement at Jaguar Land Rover Plant

The UK and US have introduced a new trade agreement easing tariffs on vehicles, metals, and agricultural goods, with plans for collaboration in advanced technology sectors including biotech, quantum computing, and aerospace.

Autocar Professional BureauBy Autocar Professional Bureau calendar 09 May 2025 Views icon1422 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
UK and US Sign Trade Agreement at Jaguar Land Rover Plant

The United Kingdom and the United States have announced a new trade agreement at the Jaguar Land Rover (JLR) factory in Solihull, England. UK Prime Minister Keir Starmer made the announcement during a visit to the facility, which is part of Tata Motors. Shares of Tata Motors, which owns JLR, were up 2.7% in morning trade.

The agreement includes tariff reductions in several sectors. UK-made cars exported to the US will now face a reduced tariff of 10%, down from the previous 27.5%, for up to 100,000 vehicles annually. This change is expected to ease costs for manufacturers such as JLR. 

Tariffs on British steel and aluminum exports to the US, previously set at 25%, will also be removed. In agriculture, the deal allows 13,000 metric tonnes of UK beef to be exported to the US tariff-free. Tariffs on ethanol used in beer production will also be eliminated.

The trade pact outlines future cooperation between the two countries in areas including biotechnology, life sciences, nuclear fusion, aerospace, quantum computing, and space research.

Prime Minister Starmer described the deal as part of the UK’s wider efforts to develop global trade links. He added that the government continues to work on improving trade relations with the European Union.

While the deal has been welcomed for its potential to improve market access, some industry groups have noted it is not a full free trade agreement. Others have raised concerns about possible impacts on local sectors due to increased competition from US imports.

The agreement marks a step in post-Brexit trade policy, with a focus on targeted sectoral cooperation rather than broad, all-encompassing trade deals.

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