US Set to Lower Tariffs on British Cars Within Days, UK Minister Confirms

The United States is poised to reduce tariffs on British automobiles within days, according to UK Trade Secretary Jonathan Reynolds. This move follows significant discussions between UK Prime Minister Keir Starmer and U.S. President Donald Trump, culminating in the Economic Prosperity Deal signed on May 8, 2025.

Under the agreement, the U.S. will lower its 25% tariff on British cars to 10% for up to 100,000 vehicles annually. In exchange, the UK will permit tariff-free imports of 13,000 tonnes of U.S. beef and 1.4 billion litres of ethanol. The deal also includes provisions for steel and aluminium exports, though these are subject to ongoing negotiations due to concerns over compliance with U.S. “melted and poured” regulations. 

U.S. Commerce Secretary Howard Lutnick confirmed via social media that quotas on British cars and U.S. goods such as beef and ethanol will be implemented soon. UK Ambassador to Washington Peter Mandelson also emphasized Britain’s readiness to implement the deal during a meeting with President Trump. 

The reduction in tariffs is expected to provide a significant boost to the UK’s automotive sector, benefiting manufacturers like Jaguar Land Rover and Bentley. However, the UK bioethanol industry has expressed concerns that increased competition could adversely affect their operations. (

Both the UK and U.S. governments are finalizing the necessary legal instruments to implement the agreement promptly. UK officials have indicated that they are prepared to activate their part of the deal as soon as the U.S. formally enacts its portion. 

This development marks a significant step in strengthening the trade relationship between the UK and the U.S., with both sides aiming to enhance bilateral trade and economic cooperation.