Good times have come for the British economy. On June 30, a new trade agreement between the United States and the United Kingdom officially took effect. This deal is expected to lower US tariffs on British exports of automobiles and aerospace components, offering a boost to key sectors of the UK economy.

British automakers can now export up to 100,000 vehicles annually to the United States at a reduced tariff rate of 10%, down from the previous 27.5%. Meanwhile, tariffs on aircraft engines and parts have been completely eliminated. 

However, questions surrounding steel and aluminum tariffs remain unresolved, and it is still unclear how these issues will ultimately be addressed. Currently, British steel exports are exempt from 50% tariffs, but this temporary reprieve granted by US authorities is set to expire on July 9, after which the duties could be reinstated. Stabilizing the situation requires a new bilateral agreement that has yet to be reached.

The new deal is expected to boost British exports of automobiles and aerospace products, but for steel producers, the outlook remains uncertain. So far, no long-term tariff exemptions have been secured for the sector.