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US will aim for UK to cut its automotive tariff to 2.5% from 10%, WSJ reports
Published by Global Banking & Finance Review®
Posted on April 22, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 22, 2025
2 min readLast updated: January 24, 2026
The US is negotiating with the UK to lower automotive tariffs from 10% to 2.5%, aiming for a broader trade agreement.
(Reuters) -The United States will aim for Britain to reduce its automotive tariff from 10% to 2.5%, The Wall Street Journal reported on Tuesday, citing people with knowledge of a draft document circulated by the administration of President Donald Trump.
British finance minister Rachel Reeves is due to meet Treasury Secretary Scott Bessent this week to push Britain's case for a trade agreement with Washington that could lower or eliminate the tariffs imposed by Trump on UK exports.
Washington is preparing its terms for trade negotiations, aiming for London to reduce levies and other non-tariff barriers on a variety of goods, the report said, adding the Trump administration also aims to push for more relaxed rules on U.S. agricultural imports, including beef.
Trump imposed a 10% tariff on most imports from Britain and a 25% tariff on key sectors such as cars and steel.
It remains unclear if the U.S. will consider reducing its 10% tariff on Britain if London agrees to all of its trade demands, according to the Journal.
"The administration's trade and economic team is working at breakneck speed to negotiate custom-tailored deals with our major trading partners. Any final decisions and agreements, however, will come from President Trump and President Trump only," White House spokesman Kush Desai said when asked about the report.
Downing Street did not immediately respond to Reuters' request for comment.
(Reporting by Urvi Dugar; Additional reporting by Jeff Mason; Editing by Nia Williams and Christopher Cushing)
The main topic is the US aiming to reduce the UK's automotive tariff from 10% to 2.5% as part of trade negotiations.
The US aims to lower tariffs, reduce non-tariff barriers, and relax rules on agricultural imports.
US Treasury Secretary Scott Bessent and UK finance minister Rachel Reeves are involved in the discussions.
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