Relief for Britain's car industry as it is confirmed Trump tariffs will be cut from 27.5% to 10%

Relief for Britain’s car industry as it is confirmed Trump tariffs will be cut from 27.5% to 10%

Published on: June 24, 2025

By DAILY MAIL CITY & FINANCE REPORTER

Updated: 22:01 BST, 24 June 2025

Britain’s car industry has been given a boost after it was confirmed that US tariffs will be cut from Monday next week.

Donald Trump has signed an executive order, taking effect on June 30, which means the sector will escape the levies being imposed on car makers in other countries.

Jaguar Land Rover and Aston Martin will face charges of 10 per cent rather than 27.5 per cent – though that is still higher than the pre-Trump level of 2.5 per cent.

It is also thought a deal on aerospace – which will see firms such as Rolls-Royce go back to exporting to the US tariff-free instead of facing a levy of 10 per cent – will come into force on Monday.

But the steel industry – part of the original agreement – has been left in limbo with agreement on a zero tariff deal yet to be reached.

Mike Hawes, boss of the Society of Motor Manufacturers and Traders, said: ‘It’s not as good as the 2.5 per cent we had – but it’s a damn site better than 27.5 per cent.’

Tariff cut: Donald Trump has signed an executive order which means UK car makers will escape the levies being imposed on those in other countries

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Relief for Britain’s car industry as it is confirmed Trump tariffs will be cut from 27.5% to 10%

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Relief for Britain’s car industry as it is confirmed Trump tariffs will be cut from 27.5% to 10%