When the UK and the US first announced their new trade deal, it was hailed as a breakthrough moment for post-Brexit Britain.
This promised reduced tariffs, improved market access and closer economic ties between the two nations.
Now that some time has passed since its implementation, UK businesses are beginning to see how those promises are taking shape across key sectors such as aerospace, automotive and agriculture.
Aerospace and automotive: early signs of stability
The automotive sector, which faced significant uncertainty over tariffs, has been among the first to benefit.
The agreement introduced a 10 per cent tariff cap on the first 100,000 vehicles exported annually to the US, a measure that has helped restore confidence and competitiveness.
For comparison, exporters from other nations continue to face tariffs of up to 27.5 per cent, giving UK manufacturers a welcome edge in an increasingly challenging global market.
Suppliers are also benefiting, with reduced tariffs on car parts easing the strain on production costs and supply chains.
While the global car industry continues to grapple with inflation and demand shifts, the deal has helped steady the ship for many UK exporters.
The aerospace industry has also emerged as a clear winner. The removal of tariffs on aircraft and related components has supported a rebound in exports and helped strengthen the UK’s position as a key manufacturing partner for the US.
Industry analysts estimate that the exemption could save millions of pounds in annual costs while encouraging joint projects and innovation across both countries.
Agriculture: new opportunities and ongoing concerns
The agricultural element of the deal opened up the US market to UK beef exports for the first time, with a tariff-free quota of 13,000 metric tonnes.
In return, British import tariffs on US beef have been lowered for the same quota amount, marking a significant step in transatlantic food trade.
For UK farmers, this has created new routes to market and opportunities to form partnerships with American distributors.
However, some farming groups continue to raise questions about welfare standards, particularly regarding the use of growth hormones and how closely such regulations will be enforced under the new system.
While early exports have been modest, the deal has sparked optimism among producers seeking diversification beyond Europe.
Broader trade collaboration
Beyond these headline sectors, both governments have signalled a shared ambition to expand the agreement further. Future discussions are expected to cover digital trade, investment protection and collaboration on security and supply chain resilience.
There is also growing cooperation around tax compliance and anti-evasion measures, ensuring that companies trading across borders do so responsibly and transparently.
What this means for UK businesses
For UK exporters, the deal has already delivered tangible benefits in the form of reduced tariffs and improved access to one of the world’s largest markets. Yet, as with any new trade arrangement, its true success will depend on how effectively both governments and industries adapt over time.
Firms that take proactive steps, from reviewing their export strategies to understanding compliance and certification requirements, are best placed to seize the new opportunities this deal brings.
Looking to grow your business internationally?
Our advisers can help you navigate changing trade rules, identify new markets and ensure your business stays compliant while expanding overseas. Get in touch.