New Trade Deal Shifts Gears for UK Auto Market

A new trade agreement imposes a 25% tariff on British car exports exceeding a 100,000 annual quota, while removing barriers on various U.S. goods in the UK market, as announced by the U.S. Commerce Department.

A new trade deal significantly impacts British car manufacturers, imposing a 25% tariff on cars exported to the U.S. beyond a 100,000-per-year quota. The agreement, released by the U.S. Commerce Department on Thursday, establishes a reciprocal 10% tariff rate within the quota limit.

In a bid to facilitate trade, the pact also dismantles UK market barriers for a series of U.S. exports. These include ethanol, beef, fruits, vegetables, animal feed, tobacco, shellfish, chemicals, and textiles, according to the department's statement.

This development marks a pivotal moment for British car producers as they navigate new economic landscapes, while U.S. exporters gain enhanced access to the UK market across a diverse range of goods.

(With inputs from agencies.)