A new UK–US trade agreement has slashed tariffs on British steel, aluminium, and cars—prompting celebrations in the manufacturing sector but raising questions about its broader implications for logistics, especially air cargo.
Announced as a “breakthrough” by UK Prime Minister Keir Starmer, the deal reverses some of the sweeping tariffs imposed by the Trump administration last month. American tariffs on British car exports will fall from 27.5 percent to 10 percent, while duties on UK steel and aluminium exports to the US have been cut to zero. British beef will also gain access to the US market, and American aerospace manufacturers will receive preferential access to UK components.
The agreement was positioned as a lifeline for UK industrial exporters and a political win for both sides. “
This is a fantastic, historic day,” said Starmer, speaking at Jaguar Land Rover’s plant in Solihull. “The agreement has saved jobs in the car and steel industries that were under threat.”
But while the announcement has brought immediate relief to key sectors, its scope remains limited. A 10 percent baseline tariff on most goods still remains in place, and there is little clarity on how intellectual property-based sectors—such as pharmaceuticals, tech, and creative services—will be handled. The omission of a formal commitment to these industries leaves gaps in the trade framework with potentially far-reaching consequences for cross-border logistics.
Speaking to Air Cargo Week, Kevin O’Marah, Chief Research Officer at Zero100 and creator of Gartner’s Supply Chain Top 25, described the agreement as “a win for both nations” but cautioned against assuming this signals a return to traditional trade liberalisation.
“Under the current US administration, bespoke company-level deals and exemptions are becoming more common than traditional bilateral trade agreements,” O’Marah explained. “The lesson is to stay calm and focus on the win-win… Symbolism is everything right now.”
He warned that the deal may be more of a political gesture than a robust platform for long-term supply chain planning: “The biggest thing missing from the deal is any kind of guarantee on free trade going forward for IP-based industries,” he added. “Reliable trade on software, design, and other IP-intensive services would be a natural win for both countries.”
However, the continued lack of clarity around pharmaceuticals and other high-value, low-weight goods—mainstays of transatlantic air cargo—leaves many in the industry waiting for answers. Although the White House promised “preferential treatment” for UK pharma, no concrete tariffs were imposed or repealed, leaving room for uncertainty.
Increased collaboration in aerospace may offer some long-term cargo opportunities as well. US manufacturers gaining preferential access to UK components could signal increased parts movement by air, particularly for just-in-time production cycles and MRO services. Still, whether this demand will materialise at scale remains to be seen.
Structural shifts, not just tariffs
O’Marah also pointed to the bigger picture behind the deal: “The US is doubling down on restoring advanced manufacturing—more factories, though not necessarily more jobs.” For global brands and logistics operators, this means increasing complexity in routing and regulatory compliance.
“For many multinationals, keeping shelves stocked now Trumps profit margins,” he noted. “That’s the environment carriers and forwarders must navigate—high volatility and shifting political winds.”
