U.S. & U.K. Drop Car Tariffs – It’s a Road‑Trip to Savings!
Picture this: You’re driving a shiny new British car into the United States and the customs desk winks at you with a lowered fee. That’s exactly what the U.S. President, Donald Trump, did by signing a fresh executive order that trims the tariff on up to 100,000 imported cars from a hefty 25 % down to a more palatable 10 %. The move taps into a trade deal that kicked off last month, right in the middle of a G7 summit in Canada.
Key Wins in the Deal
- Cars get a lighter touch: 10 % tariff on up to 100,000 British vehicles – a big win for U.K. car makers and eager U.S. buyers.
- Loosening of some aerospace duties, meaning fewer charges on certain aero parts that Brits love.
- Preliminary plans to tell the U.S. Congress where steel and aluminum tariffs will land—currently still in the “to‑be” stage.
- UK beef and ethanol quotas are slated for a quick parliamentary briefing; the U.S. can now bring more cattle across the border without compromising safety.
Why It Still Feels Like Half a Deal
While both governments are cheering, the bargain isn’t the full‑blown free‑trade deal many had hoped for. The missing pieces? Zero steel tariffs—which UK manufacturers were buzzing about. Getting those waived requires a nod from Congress, which is still on the fence.
Political Reactions
- Trump praised U.K. Prime Minister Keir Starmer for “doing what others couldn’t do in six years.”
- UK biz chief Jonathan Reynolds highlighted forthcoming details on beef and ethanol, promising strict food safety still applies.
- Opposition voice Kemi Badenoch slammed the deal as a “tiny tariff deal,” suggesting it falls short of past government promises.
Industry Minds on the Fallout
Mark McCarthy, the big‑wheeled CFO of Basware, broke down the turbulence caused by trade wars:
- Tariff uncertainty shakes the global economy and makes IT projects feel like they’re on a roller‑coaster.
- CIOs and CFOs may postpone hefty tech spend, but they’re still prioritising mission‑critical finances that bring instant, provable ROI.
- Automated accounts‑payable systems cut invoice processing from 10 days to under four, helping keep suppliers happy and cash flowing.
- AI tools can detect and stop fraudulent payments, guarding against the spike in fraud during rough economic seas.
- In the end, macro‑economic turbulence doesn’t kill IT spending – it simply reshapes it. Companies that align tech with the biggest impact keep their advantage.
What Happens Next?
The next step? U.S. Congress will vet the steel and aluminum details, while U.K. Parliament will outline beef and ethanol quotas. Even if the deal stays on the slim side, it’s a positive rollout—both nations stepping in cooler parking tickets for UK cars.
Keep an eye on these developments; who knows what tariff surprises the next G7 summit might hold?
