Trump Slashes Tariffs For UK Cars

President Trump has made a new trade deal with the UK, slashing tariffs on cars assembled there and imported to the US. That means British brands like Rolls-Royce, Bentley, Jaguar, Land Rover, Mini, McLaren, etc. will benefit from this development.

Wholesale used car prices increased in April.

It was announced on May 8 that Trump and UK Prime Minister Keir Starmer were able to negotiate a trade pact, with the president hailing the UK as “truly one of our greatest allies.” This comes as critics have assailed Trump for not effectively hammering out new trade terms with other nations, one of the supposed reasons for the tariffs.

Under the new agreement, the UK will be able to import 100,000 cars into the US at a 10 percent tariff. Any vehicles imported beyond that figure for the year will be subject to the 25 percent tariff. The deal could evolve over time as the two nations continue talks.

While some might think that deal’s too harsh for the UK, we wonder if this will help weed out the highly unreliable British vehicles which have clogged American repair shops for decades. If you know, you know.

In the meantime, the US and Germany have been working on an agreement for tariffs. We wonder how it will be different from what was arranged with the UK since cars are also a key export for the European nation.

The tariffs on UK-assembled cars were especially damaging because vehicles are the single largest export to the US. That’s why British officials, media, and the auto industry there was so on edge about the tariffs and the lack of an agreement.

It’s not a coincidence this agreement was announced on VE Day. Trump referenced that, saying 80 years ago today the UK and US jointly defeated the Third Reich, making it the perfect day to make such a joint announcement.

One big question looms: when will Trump and other world leaders come to agreements which will lower tariffs on cars imported from other nations? That remains to be seen.

Image via Rolls-Royce Motor Cars