This week at the G7 summit in Canada, US President Donald Trump signed an executive order putting into effect key parts of a new UK-US tariff agreement, offering some relief to the UK automotive industry amid broader trade tensions. The deal allows up to 100,000 British-made cars to be exported to the US with a 10% tariff, down from the 25% rate introduced earlier this year. While not a return to pre-2025 levels, the reduced rate is seen as a win for UK manufacturers, especially with European competitors still facing higher duties. The move follows months of negotiation and provides a much-needed boost to exporters who had been holding back shipments due to uncertainty. Jaguar Land Rover, for example, recently paused US-bound deliveries, citing concerns over rising costs. Industry body SMMT welcomed the news, saying it was “a huge reassurance” for the sector. However, the relief is capped and questions remain about what happens once the quota is filled. The agreement also includes UK tariff cuts on US beef and ethanol, while discussions on steel and aluminium duties, still at 25%, are ongoing. The wider trade relationship between the two nations remains limited, with this pact offering targeted support rather than sweeping reform. For UK automotive businesses, the short-term gain is clear: improved access to the US market. The long-term outlook will depend on whether further agreements can follow.