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Planes and Automobiles… but Hold the Beef?
Keir Starmer has struck a much-hyped UK–US trade deal at the G7 summit—but behind the photo ops and polished press releases, critics are asking: what exactly did Britain concede to get here?
While the deal brings some headline-grabbing benefits for the UK’s automotive and aerospace sectors, it may come at a high price for British farmers, steelmakers, and tech policy autonomy.
What the UK Gained
- Tariff relief for British-made cars: US tariffs on UK car exports have been slashed to 10%—but only for 100,000 vehicles per year. Anything over that still pays the full whack.
- Aerospace boost: Tariffs eliminated for UK aerospace parts and services.
- Potential movement on steel: A promise to revisit the lingering 25% tariff on British steel—though this remains conditional on the UK proving it’s not a backdoor for Chinese state-owned steel.
The Concessions Nobody’s Boasting About
While Downing Street may be busy spinning the “special relationship,” here’s what the UK appears to have traded away:
1. A Lifeline to US Beef and Ethanol
Britain has agreed to:
- Lift quotas on American beef imports—raising concerns among British farmers over undercutting by US produce.
- Allow 1.4 billion litres of US ethanol into the market, threatening the survival of domestic suppliers like Vivergo and Ensus, who currently supply 95% of the UK’s bioethanol.
“Our biggest concern is that two agricultural sectors have been singled out to shoulder the heavy burden… The US will have access to 1.4 billion litres of duty‑free ethanol,” warned NFU President Tom Bradshaw.
Further reporting from AP News highlights that the UK agreed to phase out its 19% ethanol tariff via a quota system, raising fears of closures at facilities like Hull’s Vivergo plant.
2. A Softening Stance on Big Tech Taxes?
The UK’s Digital Services Tax (DST)—a 2% levy on tech giants like Amazon and Google—is now reportedly under review as part of the deal. While no formal rollback has been confirmed, Washington made its position clear: no DST, no deepening ties.
That puts British sovereignty over tech regulation on shaky ground—especially after the post-Brexit push to set independent policy.
Steel: Still Stuck in Limbo
Despite pressure from both sides, US steel tariffs remain—with Trump-era policies still hitting British steel and aluminium with a 25% levy.
America wants proof that UK steel firms like Tata and British Steel aren’t funnelling Chinese metal into US markets. Without that, the tariffs stay. Full stop.
For more on this geopolitical tangle, check out our recent internal article: Postcards from Kyiv: Did Graham Light the Fuse?
Trade-offs in a Nutshell
| UK Gains | UK Concessions |
|---|---|
| ✔ 10% tariff on cars (limited quota) | ❌ More US beef & ethanol undercutting UK producers |
| ✔ Aerospace tariff removals | ❌ DST on US tech firms under quiet pressure |
| ✔ Steel tariffs might be eased | ❌ No guarantees—depends on ownership transparency |
Is This a Deal Worth Celebrating?
That depends on which industry you ask. While carmakers and aerospace firms may be raising a glass, UK farmers, biofuel producers, and digital regulators might be reaching for a sick bucket.
And with steel still in limbo, and US influence creeping into domestic tax and food policy, many are asking:
Is this sovereignty, or just surrender with a smile?
What do you think?
Is the UK–US trade deal a step forward—or a slow sell-out? Join the conversation in the comments below.
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