Britain’s deal with America to reduce tariffs on UK car exports could finally be implemented within days, Business Secretary Jonathan Reynolds signalled today.
More than a month ago, on 8 May, PM Sir Keir Starmer and Donald Trump struck an agreement in the wake of the US President imposing sweeping trade tariffs across the world.
The two leaders struck a ‘cars for agriculture’ deal that would see tariffs on British automotive and steel exports to the US slashed.
This was in exchange for greater access to UK markets for American goods such as beef and ethanol.
But the agreement is still yet to be implemented amid claims the two sides are still negotiating over the section of the deal affecting British steel exports.
Mr Reynolds this afternoon insisted Britain was ‘ready to go’ as soon as the US President gives the green light on the deal.
He told reporters at a Westminster lunch event: ‘We are ready to go on our side.
‘In terms of the steps I need to take, I will inform the House [of Commons] with a written ministerial statement and lay the statutory instruments for the reciprocal part of that deal, which is obviously about beef and ethanol for us on this side.
‘So we’re ready to go, and as soon as the President and the White House on their side are able to, we will implement that part of the deal.’
Britain’s deal with America to reduce tariffs on UK car exports could finally be implemented within days, Business Secretary Jonathan Reynolds signalled today
PM Sir Keir Starmer and Donald Trump, pictured together in February, struck an agreement in the wake of the US President imposing sweeping trade tariffs across the world
The Business Secretary added he was ‘very hopeful’ the agreement could be implemented by the end of this week.
Sir Keir is soon due to meet with Mr Trump at the G7 summit in Alberta, Canada, which begins on Sunday.
Earlier this week, Mr Reynolds met with US commerce secretary Howard Lutnick in London, with the PM also dropping in on the meeting.
He said: ‘We have had – again – a very significant week. We have not only had interactions this week… between ourselves and the US, and ourselves and China, we have been hosting talks between the US and China.’
Mr Reynolds added: ‘Secretary Lutnick and I and the PM talked specifically about the execution of the automotive tariff reduction, the quota, which is part of our deal.’
Along with 10 per cent tariffs on all British goods, Mr Trump earlier this year imposed 25 per cent levies on cars and steel.
He later increased the tariff on steel to 50 per cent, but gave the UK a reprieve, keeping Britain’s rate at 25 per cent until at least July 9.
Under the broad terms of last month’s UK-US agreement, the US will implement quotas that will effectively eliminate the tariff on British steel and reduce the tariff on UK vehicles to 10 per cent.
Following Tuesday’s meeting with Mr Reynolds and the PM, Mr Lutnick posted on X/Twitter: ‘It was a pleasure to meet our great ally, the Prime Minister of the UK, at Downing Street.
‘We agreed to implement our historic trade deal as soon as possible, starting with the agreed quotas for UK autos, and US beef and ethanol, becoming simultaneously active in the coming days.’
