Jennifer Meierhans<\/span><\/p>\nBusiness reporter, BBC News<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n
Getty Images<\/span><\/div>\n<\/div>\n<\/figure>\n\n
The US and the UK have reached a deal over tariffs on some goods traded between the countries.<\/p>\n
US President Donald Trump’s blanket 10% tariffs on imports from countries around the world remains in place and still applies to most UK goods entering the US.<\/p>\n
But the deal has reduced or removed tariffs on some of the UK’s exports, including cars, steel and aluminium.<\/p>\n
Here’s an at-a-glance look at what’s in the deal.<\/p>\n<\/div>\n
This isn’t a trade deal<\/h2>\n<\/p>\n\n
US President Donald Trump declared on social media this announcement would be a “major trade deal” – it’s not.<\/p>\n
He does not have the authority to sign the type of free-trade agreement India and the UK finalised earlier this week – this lies with Congress.<\/p>\n
Congress would need to approve a trade agreement, which would take longer than the 90-day pause in place on some of Trump’s tariffs.<\/p>\n
This is an agreement which has reversed or cut some of those tariffs on specific goods. <\/p>\n
What was announced today is only the bare bones of a narrow agreement.<\/p>\n
There will be months of negotiations and legal paperwork to follow. <\/p>\n<\/div>\n
Car tariffs cut to 10%<\/h2>\n<\/p>\n\n
Trump had placed import taxes of 25% on cars and car parts coming into the US on top of the existing 2.5%.<\/p>\n
This has been cut to 10% for a maximum of 100,000 UK cars, which matches the number of cars the UK exported last year.<\/p>\n
But any cars exported above that 100,000 will be subject to a 27.5% import tax.<\/p>\n
Cars are our biggest export to the US – worth about \u00a39bn last year.<\/p>\n
Car industry leaders have told the BBC the quota could effectively put a ceiling on the number they can export competitively.<\/p>\n
The UK currently imposes a 10% on US car imports, but it is not yet clear if there had been any change to this. <\/p>\n
The US has previously demanded the import tax be cut to 2.5%, and Chancellor Rachel Reeves has indicated she is open to such a cut.<\/p>\n
Trump also announced that Rolls Royce engines and plane parts will be able to be exported from the UK to the US tariff free.<\/p>\n
He also said the UK was buying $10bn worth of Boeing planes from the US.<\/p>\n<\/div>\n
No tariffs on steel and aluminium<\/h2>\n<\/p>\n\n
A 25% tariff on steel and aluminium imports into the US that came into effect in March has been scrapped as part of this deal.<\/p>\n
This is huge news for the firms such as British Steel which was brought under government control as it struggled to stay operational.<\/p>\n
The UK exports a relatively small amount of steel and aluminium to the US, around \u00a3700m in total. <\/p>\n
However the tariffs also cover products made with steel and aluminium, including things such as gym equipment, furniture and machinery.<\/p>\n
These are worth much more, about \u00a32.2bn, or about 5% of UK exports to the US last year.<\/p>\n
Steel industry leaders had warned if the 25% tariff wasn’t lowered or removed it would have been devastating for the industry. <\/p>\n<\/div>\n