UK Car Exports to US Rebound After Tariff Reduction
British car exports to the US rose 6.8% in July after a tariff cut, ending three months of decline under the new UK-US trade deal.
Tariff Adjustment Spurs US Sales
In July, exports of UK-made cars to the United States rose 6.8%, marking a recovery after three consecutive months of decline.
In April, US tariffs on British vehicles jumped from 2.5% to 27.5% before both sides agreed to reduce duties to 10% from the end of June.
Impact of Trade Deal
The Society of Motor Manufacturers and Traders (SMMT) said the figures underscore the deal’s effect.
"The US remains the largest single national market for British-built cars," the SMMT added.
- The 10% tariff applies to the first 100,000 vehicles annually
- Shipments beyond that face a 27.5% duty
In July, the US accounted for 18.1% of UK car exports, compared with 45.6% to the European Union.
Premium Brands and Manufacturing Challenges
Colleen McHugh, CIO at Wealthify, noted: "The US is a key market for premium brands like Jaguar Land Rover." JLR paused shipments when tariffs rose and resumed them in May.
Overall, UK car production grew for the second month, thanks to stronger domestic and export demand. Yet output is down 11.7% year-to-date, with July marking its lowest level since 1953.
Experts cite high labour costs, Brexit uncertainty, and global competition for the slump.
The UK-US tariff deal has given a timely lift to British car exports, but wider industry pressures remain a hurdle for long-term growth.
This topic was reported by BBC News.
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