On May 8th, United Kingdom Prime Minister Keir Stamer and United States President Donald Trump came together to agree on a landmark trade deal. The first-of-its-kind trade deal between our two countries has far reaching effects on agriculture, steel... and electric cars!
The United Kingdom steel industry will no longer face heavy trade tariffs for exported steel to the United States market. That’s great news for the UK whose steel industry was close to total collapse. Tariffs on steel has gone from 25 percent to zero overnight thanks to the deal.
The US/UK Deal will have far-reaching effects. For instance, there will be no tariff on biofuels and auto exports will reduce from 17.5 percent to just 10 percent on UK cars. But most import to our GreenCars audience, the deal will make a big difference for the electric vehicle industry for both the U.S. and England.
What this Deal means for Jaguar
British EV makers such as Jaguar/Land Rover could be big winners. While European car makers face a 25 percent tariff for cars being exported to America, British cars such as those built by Jaguar, will only have a 10 percent tariff when shipping to the extremely important American market.
As we know, Jaguar shut down car production for a year while it converts operations to a fully electrified output of all its car models. Plus, the deal means savings in the steel market and EVs need high-grade steel for battery packs. The zero tariff on UK steel means Jag and other British automakers will save on production costs.
In fact, the UK Prime Minister says that Jaguar/Land Rover is prepped to save literally hundreds of millions annually, helping to expand its all-EV line thanks to the recent agreement. That’s happy news for the venerable 102 year old British automaker as it evolves from gasoline to electric power for its fleet of cars.
What this Means for Brit EV Adoption
EV adoption is speeding up worldwide and the US/UK agreement lowers the price of Brit EVs to our shores. It means companies such as Jaguar can offer more competitive pricing yet maintain its profit margins.
While Chinese EV manufacturing faces new tariffs and trade barriers to the US, the new US/UK trade deal offers a chance for EV development on both sides of the Pond… and that’s a good thing. God save the Jag!
