UK vehicle exports to the US have seen a significant rebound in July, thanks to a recent trade agreement between London and Washington that reduced tariffs on the sector. According to data from the Society of Motor Manufacturers and Traders (SMMT), exports rose by 6.8 percent to nearly 10,000 vehicle units in July, following three consecutive months of decline.

The SMMT previously reported a 55.4 percent year-on-year slump in UK vehicle exports to the US in May, with smaller declines in April and June. The trade agreement, which took effect on June 30, reduced tariffs on UK car exports to 10 percent, with a limit of 100,000 vehicles annually. This move has helped to revive demand, which had been impacted by a 27.5 percent tariff imposed by US President Donald Trump in April.

The UK-US trade deal has been instrumental in boosting exports, with the US remaining the largest single national market for British-built cars. The SMMT highlighted the importance of this agreement, citing July’s performance as evidence of its positive impact. The UK auto sector, dominated by foreign-owned brands such as Nissan and Jaguar Land Rover, relies heavily on exports, with almost 80 percent of cars made in the UK last year being shipped abroad, primarily to the European Union.

The US market is particularly significant for UK-produced luxury models, including those from Bentley and Rolls-Royce, which are owned by German companies. The trade agreement has provided a much-needed boost to the sector, which had been struggling with declining exports in recent months. As the UK continues to navigate its trade relationships with key markets, the success of the UK-US trade deal will be closely watched, with potential implications for the future of the UK auto industry.