British farmers have long used their livestock as collateral to save the car industry, but the new US-UK trade deal is set to change that. With tariffs now reduced to 10% for cars, Aston Martin and other manufacturers expect pent-up demand to be unleashed on Monday.
Auto shipments across the Atlantic were down over half in May after Donald Trump’s imposition of a 25% tariff, but the new deal will help British cars regain their competitiveness. Aston Martin CEO Adrian Hallmark said the luxury carmaker had stopped shipping between April and June, but now expects strong demand when it starts invoicing cars.
The trade deal was agreed between Trump and Keir Starmer in early May, but delays meant the higher tariff continued to apply, increasing costs for British cars. However, with the new 10% duty, manufacturers are optimistic about the future.
Lotus, a prestige brand, has received reassurances from the business secretary that it will not close its UK factory after considering shifting production to the US. The company had been under pressure due to concerns over Brexit and trade deals.
The car industry welcomed the deal when it was struck, preventing job losses at Jaguar Land Rover. However, with limited growth room due to a 100,000-car quota, manufacturers are cautious about the future.
Meanwhile, British farmers will see an increase in exports to the US, with 13,000 tonnes of beef available for sale next year. However, there is still a catch: the beef must wait until January due to a wider tariff deal with other countries.
The UK steel industry faces uncertainty over its tariffs, which are set to expire on July 9. The sector urgently needs a zero-tariff deal to protect jobs and unlock growth.
Source: https://www.theguardian.com/business/2025/jun/30/shiploads-cars-ready-us-from-uk-as-trade-deal-kicks-in