Cars remain the UK’s top export to the US, accounting for 27.4% of shipments last year|Brian Snelson|CC BY 2.0

Tariff cuts on Britain’s automotive and aerospace exports to the US took effect, confirmed the UK government on Monday.

Under the new tariffs, UK carmakers can now export to the US with a 10% tariff quota, down from 27.5%. America has also scrapped its 10% levy on Britain-made aircraft engines and parts. 

The agreement, finalized at the G7 summit with President Donald Trump, excludes steel and aluminum tariffs, which still face a 25% levy. Talks are ongoing to reduce the same.

Cars remain the UK’s top export to the US, accounting for 27.4% of shipments last year.

The deal also removes a 20% tariff on US beef and a 19% tariff on US ethanol.

However, UK bioethanol producers warn they may shut down due to unfair competition from subsidized US imports.