British aerospace manufacturers to benefit from UK-US trade deal
Source: gov.uk (2025-06-16)

British aerospace manufacturers to benefit from UK-US trade deal as further details announced

- UK aerospace sector to see tariffs removed completely as further progress is made on the UK-US trade deal
- Benefits of deal to be felt by UK auto sector also, who will be able to export to the US by the end of the month under the newly lowered 10% tariff quota
- It will save hundreds of millions annually for plane and car makers with lowered tariffs and protect tens of thousands of jobs across both sectors , delivering on our Plan for Change
For the first time, the US has committed to reducing tariffs on UK aerospace goods such as engines and similar aircraft parts from the general 10% tariff being applied to all other countries, which is expected to come into force by the end of the month.

This deal is a huge win for the UK’s world-class aerospace sector currently facing additional 10% tariffs, helping make companies such as Rolls Royce more competitive and allowing them to continue to be at the cutting edge of innovation.

British car manufacturers can also breathe a sigh of relief as they will be able to export to the US at a 10% tariff rate as part of the recently agreed landmark UK-US trade deal by the end of the month.

The UK is the only country to have secured this agreement with the US which reduces car export tariffs from 27.5%, saves car manufacturers hundreds of millions a year, and protects tens of thousands of jobs, delivering on our Plan for Change.

Business and Trade Secretary, Jonathan Reynolds said:

We agreed this deal with the US to ensure jobs and livelihoods in some of our most vital sectors were protected, and since then we have been focused on delivering those benefits to businesses.

Bringing trade deals into force can take several months, yet we are delivering on the first set of agreements in a matter of weeks. And we won’t stop there.

As part of our Plan for Change, this government is doing all it can to reduce the pressures on businesses by lowering costs, speeding up delivery times and helping them to navigate in a time of global uncertainty.

Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes said:

This is great news for the UK automotive industry, helping the sector avoid the severest level of tariffs and enabling many manufacturers to resume deliveries imminently.

We wait to see the full details of the deal and how it will be administered but this will be a huge reassurance to those that work in the sector and bolster the confidence of our important US customers.

The fact the UK has secured a deal, ahead of many competitors, and which makes automotive a priority, should be recognised as a significant achievement.

Rolls-Royce CEO, Tufan Erginbilgic said:

The tariff exemptions on aircraft, aero engines and parts that have been secured are truly significant. Alongside the anticipated UK Government’s commitment to the sector in the forthcoming Industrial Strategy they will help British aerospace to thrive, creating skilled jobs, exports and delivering growth for the UK economy.

The US is a vitally important market for Rolls-Royce and we welcome the strengthening of trade ties between the two countries. Aerospace is an engine for growth for the global economy.

Rolls-Royce plays a critical role in ensuring the UK has highly-differentiated and world-leading capability in aero-engine technology. With strategic investment and long-term planning, it delivers economic growth, skilled jobs and exports.

Thanks to the UK-US deal, the UK is the only country to be exempt from the global tariff of 50% on steel and aluminium. As the Prime Minister and President Trump have again confirmed, we will continue to go further and make progress towards 0% tariffs on core steel products as agreed.

We have agreed reciprocal access to 13,000 metric tonnes beef for both US and British farmers – meaning the UK can export to the US too. We have been clear that any US imports will need to meet UK food safety standards, and that has not changed since we agreed this deal.

Both countries remain focused on securing significantly preferential outcomes for the UK pharmaceutical sector and work will continue to protect industry from any further tariffs imposed as part of Section 232 investigations.

This deal is one of many international agreements this government has secured recently to boost our economy, including a trade deal with India which will add £4.8 billion to the UK economy and £2.2 billion in wages every year and a renewed EU deal which will add nearly £9 billion to the UK economy by 2040 on SPS and emissions measures alone.

Today’s announcement is the result of work happening at pace between both governments to lower the burden on UK businesses, especially the sectors most impacted by the tariffs. We will update Parliament on the implementation of quotas on US beef and ethanol, part of our commitment to the US under this deal.