The trade deal between the UK and the US is already having an effect on many important parts of the British economy, especially in the steel, agriculture, and automotive industries. This historic deal lowers the tariffs on British car exports to the US from 25% to 10%. It is a good sign for manufacturers after a time of major problems. The automotive industry, on the other hand, expects to see big benefits. Other industries, like farming and steelmaking, are still having problems that could make them less viable in the short term.

To fully understand the effects of the UK-US trade deal, we need to closely examine how it affects these different industries and what stakeholders need to do to take advantage of new opportunities or lessen risks.

What effect does the UK-US trade deal have on the UK’s car industry?

The UK-US trade deal will probably help the car industry the most right away. After months of slow sales, British car makers are getting ready to increase exports. This is especially true for high-end brands like Aston Martin, Lotus, and Jaguar Land Rover (JLR). The US put a 25% tariff on UK cars in April, which caused exports to drop by more than half in May. This change comes after that.

Adrian Hallmark, the CEO of Aston Martin, said that the company stopped shipping between April and June because of the tariffs. He said that the stop was “not catastrophic, but a little uncomfortable,” which showed how it affected their normal business flow. Now that tariffs have been cut to 10%, Aston Martin is getting ready to bill for three months’ worth of sales in just 24 hours to restock US stocks, which had dropped by 50%.

For British car makers, this big jump in exports is a big step forward. The trade deal lets 100,000 cars enter the US market with a lower tariff. This is almost the same number of cars that JLR shipped last year, when they sent 84,000 cars to the US. Even though this quota stops growth beyond current levels, lowering tariffs still gets rid of a big financial barrier that has made it harder to compete.

Lotus has also promised that it will keep its Norfolk factory open, even though it was reportedly thinking about moving production to the US. UK Business Secretary Jonathan Reynolds is said to have talked to Lotus and its owner, Geely, and they promised to keep operations in the UK. This is a very important win because it keeps 1,300 jobs and keeps the UK as a place where cars are made well.

The UK-US trade deal will help the automotive industry by keeping jobs and encouraging manufacturers to invest and grow their exports. But stakeholders need to keep an eye on quota limits and keep talking to policymakers about how to get more trade opportunities in the future. Read another article on Future of US-UK Economic Ties

What does the trade deal between the UK and the US mean for farming?

The automotive industry stands to gain a lot, but the agricultural industry has mixed feelings about the UK-US trade deal. The deal includes new quotas that don’t have tariffs, which means that 13,000 tonnes of British beef can be sent to the US. This is a good thing on paper. However, the practical benefits will have to wait: the quota won’t be available until January of next year because of existing international agreements and the fact that Brazilian exporters have already filled this year’s US beef quota.

British farmers are angry about this delay because they want to get into the US market, but are at a disadvantage because of timing and quota limits. Tom Bradshaw, head of the National Farmers’ Union, said the government was wrong to use farming as a bargaining tool to get concessions in other areas. He said, “Agriculture has had to take down tariffs for other sectors.” They need to stop depending on farming to do all the work at some point. “Agriculture has nothing more to give.”

The deal also controversially gets rid of a 19% tax on American ethanol imports. The UK biofuel industry says this could lead to the closing of biofuel plants in the UK. Farmers are even more worried now that the trade deal puts other industries ahead of theirs.

The UK-US trade deal has an effect on UK agriculture that shows the need for more talks to protect the industry and make sure everyone has fair access to the market. If farmers don’t act quickly, they may continue to have financial problems and fewer chances in international markets.

What is the UK steel industry doing in response to the UK-US trade deal?

The steel industry is also very important, but there is still a lot of uncertainty about how the UK-US trade deal will affect it. The first trade deal promised no tariffs on steel exports to the US, but it hasn’t been put into effect yet because there are disagreements about where the raw materials come from. This problem is especially bad for Tata Steel’s Port Talbot plant in South Wales, which needs steel parts that are melted down in other countries.

UK steel exporters are currently getting a temporary break from the 50% US tariff that went into effect in June. However, this break will end soon, and a 25% tariff will still apply to exports. Gareth Stace, the director general of UK Steel, stressed how important it is to get a permanent zero-tariff deal. “Our steelmakers lose a lot of money every day that we wait.” He said, “Contracts are being lost, investment decisions are on hold, and uncertainty is making it hard to make business decisions.”

Switching to more environmentally friendly ways of making steel, like switching from blast furnaces to electric arc furnaces, makes things even more complicated. During this time of change, Port Talbot’s operations depend on imports from Tata’s factories in India and the Netherlands. UK Steel wants exemptions that take these special circumstances into account and protect jobs and production in the UK.

The UK-US trade deal’s effect on steel shows how important it is to quickly fix tariff problems. This will protect jobs in UK manufacturing, encourage investment in clean technologies, and bring back trust in the industry.

What do UK businesses need to do now that the UK-US trade deal has been signed?

The UK-US trade deal will have both good and bad effects on the UK economy. The automotive industry is going to grow because tariffs are going down and demand is high. However, agriculture and steel are facing delays and uncertainty that need to be dealt with right away.

The government needs to speed up talks to get rid of the last tariffs and quotas, especially those that affect steel and agriculture, to get the most out of the trade deal. At the same time, businesses in all fields should work with trade officials to make sure their interests are heard in ongoing talks.

In particular, helping farmers get into new markets quickly and protecting steel production from high tariffs are two important things that need to be done to ensure long-term economic growth and job creation.

If policymakers, businesses, and other interested parties work together, the UK-US trade deal’s effects can be used to build a stronger trading relationship. The UK can get the most out of this agreement and prepare for the future by making sure that all sectors are treated fairly and that problems are fixed quickly.