UK Car Exports to the US: Deal Sets Floor, Not Ceiling - NEW BOX OFFICE TO DAY

Automotive components of the UK-US trade deal confirmed last week should be seen as “a floor rather than a ceiling”, an industry leader said.

Mike Hawes, CEO of the Motor Vehicle Manufacturers Association and Trade Group (SMMT) characterized the deal as "utterly essential."

The trade agreement was confirmed during a phone call involving Prime Minister Sir Keir Starmer and US President Donald Trump on May 8.

It involved U.S. tariffs on British automobiles dropping to 10% for up to the initial 100,000 cars imported into America.

President Trump had earlier established the tariff rate for car exports to the U.S. at 27.5%.

British automobile manufacturers were extremely concerned about the effect that tariffs on their sector would have had if not addressed.

Mr. Hawes stated that the specifics of the accord "will undergo review" and "we see this as merely a starting point instead of an upper limit."

He continued: "In essence, our aim is to show that the British manufacturing sector and the exports we produce do not compete against American manufacturers."

We urgent hope to implement this solution soon since the manufactures already have vehicles prepared for shipping, however they are unsure of how to set the prices.

Mr. Hawes stated that Mr. Trump’s original tariff proposals posed an "existential threat" to the UK's car manufacturing sector, causing orders to halt suddenly as purchasers opted to "wait and see what transpires."

He went on: "Securing an agreement was completely crucial for the sector."

Mr Hawes said the UK Government is worthy of “an immense amount of credit” since it was “the first to secure an agreement” with the U.S., and automobiles were “their highest priority.”

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