Source · Select Committees · Business and Trade Committee
Recommendation 9
9
Accepted
Economic Prosperity Deal automotive tariff reductions constrained by 100,000-vehicle quota and allocation uncertainty.
Conclusion
We agree with the UK automotive industry that the tariff reductions secured under the Economic Prosperity Deal are to be welcomed, but the benefits are constrained by the 100,000-vehicle quota and uncertainty around how it will be allocated. (Conclusion, Paragraph 61) 53
Government Response Summary
The government clarifies that the 100,000-vehicle quota for UK automotive exports to the US, at a 10% tariff rate, will be administered by the US on a quarterly first-come, first-served basis starting January 1, 2026.
Government Response
Accepted
HM Government
Accepted
The EPD General Terms secured an annual tariff rate quota for imports to the US of UK-produced passenger vehicles, at a tariff rate of 10%. From 1 January 2026, the annual quota of 100,000 vehicles accessing this 10% rate will be administered by the US on a quarterly first-come first-served basis. The new quota is expected to cover the majority of UK-originating vehicles entering the US market at the 10% rate. As with all matters relating to UK competitiveness, DBT engages on a regular basis with industry representatives from companies and trade bodies, as well as via the Automotive Council, to discuss a range of issues, including UK-US trade.