The UK and the US have signed a trade deal, the first announced by the White House since implementing sweeping tariffs earlier this year, Kallanish reports.

A quota of 100,000 UK-made cars will be subject to lower tariffs of 10%, from 27.5% previously, which the UK says will save “hundreds of millions a year for Jaguar Land Rover alone.” The US is the second-largest export destination for UK automotive producers after the EU, accounting for 17% of total exports in 2024.

According to the Society of Motor Manufacturers and Traders (SMMT), 101,000 UK-made cars were shipped to the US. In the first three months of 2025, 30,200 cars were exported to the country out of 168,713 total UK car exports.

Tariffs on imports of UK steel into the US have also been cut from 25% to zero. Other provisions of the deal, which will require approval from policymakers in Washington and London, cover beef, ethanol, and aviation. Rolls Royce’s engines will be imported tariff-free.

The 10% “reciprocal” tax on most UK imports, which the White House imposed in March, remains effective on all products excluded from Thursday’s agreement. US President Donald Trump says it is a “tremendous trade deal” and that “the final details are being written up in the coming weeks.”

“This is jobs saved, jobs won, but not job done,” UK Prime Minister Keir Starmer says in a press conference. “Our teams will continue to work to build on this agreement,” removing trade barriers for other sectors,” he adds, noting the deal shows “the UK is open for business.”

According to British carmaker Jaguar Land Rover’s ceo Adrian Mardell, the US has agreed that the UK will get preferential treatment in any further tariffs imposed as part of Section 232 investigations. Welcoming the deal, he noted the UK car industry is vital to the country’s economic prosperity, sustaining 250,000 jobs.

“This deal will provide much needed relief, allowing both the industry, and those that work in it, to approach the future more positively,” adds SMMT chief executive Mike Hawes. “We hope that it will lead to broader and deeper cooperation that reduces barriers to trade still further.”

Trump has promised more deals with other countries, as trade tensions sparked by tariffs on all of the US’ trading partners begin to simmer. At the weekend, US and Chinese officials will travel to Switzerland to carry out negotiations.

The agreement follows the UK’s trade deal with India signed on Tuesday, whereby New Delhi committed to cutting import tariffs on British cars from 100% to 10%.