Driving the news: UK automakers are resuming car shipments to the U.S. today after a new trade deal reduced President Trump's tariffs from 25% to 10%.
For context: In April, Trump slapped a 25% tariff on imported cars, which severely diminished UK exports to America.
British automakers like Aston Martin completely stopped shipping cars for three months rather than pass the massive cost increase to customers.
Overall, car shipments fell by more than half in May.
Why it matters: This marks the first bilateral deal to counter Trump's auto tariffs, giving UK manufacturers a competitive advantage over other countries still facing the full 25% rate.
Yes but, the deal only covers 100,000 cars per year—about what the UK exported last year. And since Jaguar Land Rover alone shipped 84,000 vehicles to the U.S., that quota could fill up quickly if demand surges as expected.
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