US-UK trade deal welcomed by West Midlands' business leaders as 'significant step forward for manufacturers'

A deal was announced on Thursday (May 8) which removes tariffs on UK steel and aluminium imports to the US, and cuts the levy on cars from 27.5 per cent to 10 per cent, offering British luxury carmakers like Jaguar Land Rover a reprieve.

The agreement was confirmed in a conversation between Prime Minister Sir Keir Starmer, speaking from Jaguar Land Rover in the West Midlands, and US President Donald Trump, in the Oval Office, that was broadcast live on both sides of the Atlantic on Thursday afternoon, on VE Day.

Steve Morley, president of the Confederation of British Metalforming, a leading trade association for 200 UK manufacturers of fasteners, forgings and pressings, cold-rolled and sheet-metal products, has been a key champion for a deal which he said now brings "much-need clarity".

He said: “The Confederation of British Metalforming (CBM) welcomes the new US-UK trade agreement as a significant step forward for UK manufacturers, particularly those operating in the automotive, aerospace, steel and aluminium sectors.

"This deal provides much needed clarity and improved access to a critical market for CBM members, many of whom are world-class suppliers into transatlantic automotive and industrial supply chains. 

"We remain committed to supporting our members as they take advantage of this agreement and urge continued cooperation between both governments to ensure regulatory alignment and simplified customs procedures that have been mentioned all progress smoothly and at pace. 

"This is a positive signal for manufacturing at a time when confidence and international competitiveness are being tested by a wave of geopolitical pressures.”

Sarah Moorhouse, chief executive of the Black Country Chamber of Commerce, said the trade deal has finally brought much-needed certainty after a prolonged period of trade tensions.

She said: “This is a major step forward for trade on both sides of the Atlantic. Now that we have the details, businesses across the Black Country can begin planning with more confidence.

"Many of our members, including those in the automotive supply chain supplying to the likes of Jaguar Land Rover and Aston Martin, will welcome the reduction in car export tariffs to 10 per cent. With the quota covering almost all of last year's exports, this represents a significant saving that should help secure jobs across our region.

"Having spoken to a number of businesses involved in import and export in the last couple of weeks, the elimination of the 25 per cent tariff on steel exports to the US is perhaps the most critical development. Our steel and aluminium industry has faced enormous challenges, and this zero-tariff arrangement provides essential breathing space.

"A new deal will reinforce the strong commercial and investment relationships which exist between the US and UK and hopefully even create new pathways for growth.

"Businesses across the Black Country, particularly in our manufacturing and engineering sectors, do stand to benefit from reduced barriers which President Trump mentioned such as appropriate export controls and protections for key technologies.

“Cutting back on red tape is always welcome and the tariff-free status for aerospace parts offering particular benefits to our regional supply chain.

"The Chamber will now be working closely with businesses to ensure they can take full advantage of these new trading conditions, with particular focus on helping smaller suppliers understand how they can benefit from the wider economic impact."

There was delight and relief at Jaguar Land Rover where the deal was confirmed when Sir Keir Starmer made his historic telephone conversation to President Trump from JLR's Solihull plant.

Adrian Mardell, chief executive officer at JLR, said: "The car industry is vital to the UK’s economic prosperity, sustaining 250,000 jobs.

"We warmly welcome this deal which secures greater certainty for our sector and the communities it supports.

"We would like to thank the UK and US Governments for agreeing this deal at pace and look forward to continued engagement over the coming months."

Business representatives in Birmingham also welcomed the agreement and the work done to achieve it.

Emily Stubbs, head of policy at Greater Birmingham Chambers of Commerce, said: “This deal will come as a huge sigh of relief for many businesses – particularly here in the West Midlands.

“Among the biggest wins are the reduction in tariffs on our automotive exports, as well as the removal of levies on steel and aluminium.

“The deal provides much-needed certainty at a time when businesses are operating in a challenging environment.

“But this must not be the end of the process – the Government must continue to push for free and fair trade across all economic sectors and that tariffs are a lose-lose position.”

Janie Frampton, president of the Greater Birmingham Global Chamber of Commerce, added: “Following on from the India trade deal, the Government should be congratulated on what it has achieved this week.

“There is a high-level of co-dependency in our economic relationship with the United States, and it is in both our interests to continue building upon those strong foundations which have developed over decades.” 

Business Secretary Jonathan Reynolds suggested thousands of people had perhaps been days away from losing their jobs without the deal - telling the BBC it was "so important that we've got this deal over the line".

And Steve Rigby, co-CEO of Rigby Group, told the Express & Star: “This deal moves us out of the red zone - it comes just in time for the West Midlands economy and the UK’s car industry and reflects the government’s smart strategy in negotiations over recent months. 

"The implications of ‘no deal’ would have been felt by the automotive sector within weeks, which makes securing a deal so quickly an extremely positive development. We now need to move ahead with the terms we have and make it a success.

"No concession on auto tariffs would have been detrimental to the West Midlands and dealt a massive blow to the UK’s economy and now is the time to make it work.” 

Gareth Stace, director general of UK Steel, said the exact details of the deal had not yet been revealed, including when it comes into force and which steel producers will be included.

Plane engines and other aeroplane parts are excluded from trade tariffs as part of the deal, and British Airways’ parent company has already bought 32 new Boeing planes from the US, following the agreement, which also includes new reciprocal trade arrangements for agriculture - allowing new access for American beef into the UK market.