A trade deal between the UK and United States will provide welcome relief for businesses in the West Midlands, business leaders said today.

Prime Minister Keir Starmer and president Donald Trump announced the breakthrough yesterday afternoon after reaching an agreement over some goods traded between countries.

Among the most significant elements of the deal were a reduction on import taxes on cars and car parts coming into the US – from 25 per cent to 10 per cent.

Cars are the biggest import to the US – worth around £9bn last year.

A 10 per cent tariff will apply to a maximum of 100,000 UK cars – but any vehicles exported above that will be subject to a 27.5 per cent import tax.

The 25 per cent tariff on steel and aluminium imports into the US that came into effect in March has been scrapped.

There was no change to the UK's 2 per cent digital services tax on US firms, while the UK has removed tariffs on American beef and other agricultural products.

Emily Stubbs, head of policy at Greater Birmingham Chambers, 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, said: “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.” 

More reaction to the US trade deal

Richard Parker, mayor of the West Midlands, said: “This deal between the UK and the United States is a significant moment - and nowhere is better placed to benefit than the West Midlands as our region exports more to the US than any other.

"We make things the world wants - from electric vehicles and precision engineering to digital innovation and health tech. This deal means fewer barriers for our businesses and more opportunities to sell to the world’s biggest economy.

"West Midlands firms have been clear with me - they wanted a deal and they needed speed. I’m pleased to see the government act quickly to get this done.

"This is a moment to back our strengths, back our exporters and show that regions like the West Midlands are vital to the UK’s future success.

"We’re open for business and ready to lead the way.”

Steve Rigby, co-CEO of Rigby Group said: “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.”