Midlands car manufacturing at heart of US-UK trade deal

Donald Trump and Keir Starmer spoke over the phone on Thursday, confirming a trade deal between the two countries. Credit: PA images

The UK and US have finally agreed a trade pact and it’s the carmakers of the Midlands that'll feel the benefit.

Speaking from a Jaguar Land Rover plant in Solihull, Prime Minister Sir Keir Starmer called it “apt” the deal was signed on VE Day. For factories across the region, it’ll feel like a small victory of their own.

The headlines are simple: slashed the punishing 27.5% charge on UK-built cars down to 10 percent

Elsewhere, the US has scrapped tariffs on British steel and aluminium.

The West Midlands exported £8.46 billion worth of products to the US last year, more than any other UK region. For workers here, this isn’t just a nice bit of diplomacy. It’s job security.

Prime Minister Sir Keir Starmer speaks on the phone to US President Donald Trump during a visit to the West Midlands. Credit: PA images

Jaguar Land Rover, Aston Martin, Rolls-Royce are global names, but their roots are local.

Thousands of workers across Coventry, Solihull and the Black Country and Derby rely on American buyers of cars and plane engines.

The spike in US tariffs last month sent shockwaves through the industry. Some plants even paused shipments. This deal unblocks all of that.

Unions have welcomed the announcement, saying it protects skilled jobs in communities that still feel bruised from past cuts.

Ministers say it proves Britain can still land big deals on its own terms.

But this is not all good news.

To get the deal over the line, the UK had to give ground, opening up access to U.S beef and ethanol.

Farmers are already warning they’ve been used as bargaining chips to protect other industries. The National Farmers’ Union says this can’t become a pattern.

The US car tariff cut also comes with a cap: 100,000 vehicles. It’s a strong start, but not unlimited. And Trump, who hailed the deal as a “historic day”, is nothing if not unpredictable.

Promises of “preferential treatment” in future tariff rows aren’t exactly a cast-iron guarantee.

Still, for the West Midlands, today’s announcement brings real relief. For months, manufacturers have been stuck in limbo, facing rising costs and a hostile export market.

Now they can plan, produce and export with confidence, at least for the time being.

This deal won’t fix everything. But for the UK's car-making heartland, it could be just enough to keep the wheels turning.

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