A welcome from industry, but other sectors are left hoping for more

British manufacturers welcomed some tariff relief in the US-UK trade deal, with the share prices of the sports-car brand Aston Martin Lagonda and the jet-engine maker Rolls-Royce jumping.

- Jasper Jolly Lisa O'Carroll Rob Davies

The US has agreed to reduce its tariffs on cars, jet engines and steel, although the 10% baseline levy will continue to apply to other products exported from the UK, the two governments announced yesterday.

Keir Starmer spoke to Donald Trump from the headquarters of Jaguar Land Rover, the UK's biggest automotive employer and a major exporter to the US.

The US now has a quota of 100,000 British-made cars per year with a 10% tariff - significantly lower than the 27.5% rate Trump imposed in March, but more than the 2.5% before he took office. The UK exported about 102,000 cars to the US in 2024, according to the Society of Motor Manufacturers and Traders.

Mike Hawes, the society's chief executive, said the tariff cut on UK car exports was "great news for the industry and consumers". He had previously warned of job cuts "within weeks" at the luxury and premium carmakers that rely on wealthy American consumers.