UK-US Trade Deal: Winners, Losers, and Uncertainty Over Tariff Impact

• Prime Minister hails car manufacturers as winners, but businesses still feel the sting of Trump-era tariffs.
• Jaguar Land Rover and Aston Martin see positive effects from reduced tariffs, but 10% baseline still concerns many.
• Rolls-Royce, British Steel, and brewers stand to gain, while farmers face challenges with ethanol and beef tariffs.
• 10% tariff remains across most UK exports to the US, sparking frustration among business leaders.

The UK’s historic trade deal with the US may have been hailed as a victory by some, but many British businesses are still nursing the wounds of former President Donald Trump’s tariff wars. While the deal brought some relief to sectors like car manufacturing, which will see tariffs on exports slashed from 27.5% to 10%, other industries remain concerned about the broader economic implications.

During his visit to Jaguar Land Rover’s Solihull factory, the Prime Minister celebrated the deal's benefits for car manufacturers. For Jaguar, which ships a quarter of its vehicles to the US annually, the deal’s provisions are a lifeline, knocking millions of pounds off export costs that were threatening the company’s viability. Luxury carmaker Aston Martin also saw a significant boost, with its shares climbing by 14% on the news. British Steel and brewers are similarly poised to benefit from the reduction in tariffs on steel and aluminium imports.

However, Emma Rowland, adviser to the Institute of Directors, voiced her concerns. While some sectors are shielded from the worst of US protectionism, she pointed out that the deal is still far from the full free trade agreement that UK ministers have long sought. The 10% baseline tariff remains a sore point, and many businesses feel that the UK is still worse off than it was before Trump’s tariff blitz.

Among the losers, UK farmers are particularly frustrated. Despite the promise of a tariff-free quota for 13,000 metric tonnes of beef, the deal includes restrictions on ethanol imports and continues to allow the US to export beef produced with growth hormones—something that has long been banned in the UK.

Despite the positive headlines, many leaders remain skeptical. "This deal shields some of our key export sectors, but it falls short of what we really need," Rowland said. "We’re still paying the price for the Trump tariffs."

The FTSE 100 reflected this uncertainty, dipping 0.32% yesterday, with bosses privately expressing their frustration.

Tom Church, Co-Founder of LatestDeals.co.uk, the discount code platform, said, "While some companies are undoubtedly benefiting, the reality is that many businesses feel the deal hasn’t gone far enough to truly benefit the UK economy."