Good news for car imports: UK plans to reduce tariffs on US cars to boost a trade deal
Chancellor Rachel Reeves has indicated that the United Kingdom is willing to reduce tariffs on US car imports as part of negotiations for a new trade agreement. The country is seeking to maintain its agricultural standards while pushing for a broader pact.
The United Kingdom is considering reducing its 10% tariffs on imported cars from the United States to facilitate a potential trade deal with the Trump administration. Chancellor Rachel Reeves stated that the country is willing to remove trade barriers to strengthen the bilateral relationship, although she stressed that it will not compromise British food standards.
The proposal comes in the context of the 25% tariffs the United States has imposed on imports of vehicles, steel, and aluminum from the United Kingdom. Reeves noted that the British government wants to achieve a deal "fit for Britain" that protects its industry, creates jobs, and benefits consumers.
Exchange of Proposals and International Reaction
A document circulated among unions and US companies proposes reducing the British tariff on US cars from 10% to 2.5%, which has been welcomed as part of a strategy to unblock negotiations. Reeves said the UK is committed to removing trade barriers but will not accept changes to its food quality standards.
Some US officials have expressed optimism. Vice president JD Vance recently stated that there is a "good chance" of reaching an agreement. However, Reeves cautioned that the UK will not rush into any deal and will prioritize national interests before making any deal.
UK imports hit by global tariffs imposed by Donald Trump. Photo: Reuters
Agricultural Standards, One of the Main Sticking Points
Reeves reiterated that the United Kingdom will not relax its agricultural standards to facilitate a trade deal. Speaking to the BBC and during an IMF event, he emphasized that the British position on food standards has been "very clear" and has the support of the local agricultural sector. This includes maintaining the ban on products such as meat treated with growth hormones.
This point has historically been one of the most contentious in negotiations with the United States, which has pushed to relax regulations on agricultural exports. The British position has been supported by farmers' associations, which warned last week of the risks of compromising the country's food security.