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BBC News business reporter Mitchell Labiak has reported a significant increase in British car exports to the US in July, following the implementation of a new UK-US tariff agreement. After three consecutive months of declining sales, data from the Society of Motor Manufacturers and Traders (SMMT) showed a 6.8% rise in exports to the US. The deal, which lowered import taxes on UK cars from 27.5% to 10%, was agreed upon in May after US President Donald Trump initially raised tariffs in April.
The SMMT highlighted the importance of the UK-US trade deal, stating that the US remains the largest market for British cars. However, the reduced tariff rate of 10% only applies to the first 100,000 cars exported to the US annually, with any additional cars being subject to the higher rate of 27.5%. The US accounted for 18.1% of all UK car exports in July, while the European Union remains the largest market for British car manufacturers, making up 45.6% of exports.
Investment firm Wealthify’s chief investment officer, Colleen McHugh, emphasized the significance of the US market for British car manufacturers, particularly premium brands like Jaguar Land Rover (JLR). Despite the positive increase in exports for July, overall UK car manufacturing has faced challenges this year, with a decline of 11.7% in vehicle output. Factors contributing to this slump include higher labor costs in the UK, increased competition from overseas, and uncertainty surrounding Brexit. SMMT chief executive Mike Hawes acknowledged the tough environment for automotive manufacturing, citing weak consumer confidence and ongoing technological advancements within the industry
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