US offers limited tariff relief to UK in new trade arrangement

New Delhi, May 9: The United States has agreed to reduce import taxes on a select number of British cars and reintroduce limited tariff-free access for UK steel and aluminium, as part of a trade arrangement between the two countries. The announcement offers partial relief to some of the sectors affected by the tariff increases imposed by President Donald Trump since his return to office in January. Under the new terms, the US will lower car import tariffs from 25% to 10% for up to 100,000 British vehicles annually—roughly matching current export volumes—benefiting manufacturers such as Jaguar Land Rover and Rolls-Royce. Meanwhile, previously raised tariffs on steel and aluminium will be replaced with a quota system similar to previous arrangements, easing pressure on UK metal producers.

In addition, both countries have agreed to tariff-free quotas of up to 13,000 metric tonnes of beef imports, a significant increase from the 1,000 metric tonne limit previously faced by American producers exporting to the UK.

US exports are also expected to benefit from increased access for ethanol and other agricultural goods, with Washington estimating a $5 billion boost in trade potential.

Despite public enthusiasm from political leaders, the agreement lacks a formal signed deal and remains vague on several points, including provisions related to pharmaceuticals and broader trade standards. The majority of UK exports to the US will continue to face a 10% import duty, and analysts suggest the arrangement does little to substantially alter the trade balance that existed before the recent tariff hikes.

The announcement follows concerns over job losses in UK manufacturing, particularly in the automotive and steel sectors, had the tariff increases remained in place. However, while the arrangement may offer short-term relief, businesses and analysts have called for further clarity and raised doubts over its long-term impact, citing the limited scope and absence of legislative ratification.