Trump and the U.K. reach a deal on auto import tariffs.
The United States and United Kingdom have reached a deal on vehicle import tariffs into the U.S. that could serve as a model for future deals between the U.S. and other countries.
As part of a larger trade deal, the UK will get preferential treatment on auto tariffs for the first 100,000 vehicles imported. Import tariffs, which started on April 3rd for UK vehicles, are currently at 25-percent and will be reduced to 10-percent on that first 100,000 units annually. The U.K. conversely agreed to lower its tariffs from 5.1-percent to 1.8-percent. The U.S. also dropped tariffs on U.K. steel.
While 10-percent on vehicles is still four times the 2.5-percent charged prior to April 3rd, it is likely to still be a lower tax than those levied on many vehicles imported from Mexico or Canada that contain only 50-percent U.S. made parts.
The 25-percent Tariffs on auto parts appear to remain in place.
While Jaguar and Land Rover are the obvious benefactors of this trade agreement, Nissan has manufacturing facilities in the U.K. that could be utilized for production in North America. Previously, the Nissan plant in Sunderland, England produced the Infiniti QX30 for North America. The plant currently produces the Nissan Juke and Nissan Qashqai (Rogue Sport), neither of which are still sold in the U.S. Honda closed their UK manufacturing facility in 2021.
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