LONDON, June 30, 2025 (BSS/AFP) - A trade deal cutting tariffs on British exports of automobiles and aerospace equipment to the United States takes effect Monday, as the two sides continue to negotiate over steel duties.

"From today, British car and aerospace manufacturers will benefit from major tariff reductions when exporting to the US, saving thousands of jobs," the UK Department of Trade said in a statement Monday.

London and Washington reached an agreement in May to cut US tariffs on cars from 27.5 percent to 10 percent, with a limit of 100,000 vehicles a year.

It also fully eliminated a 10-percent tariff on goods such as engines and aircraft parts.

"Our historic trade deal with the United States delivers for British businesses and protects UK jobs," Prime Minister Keir Starmer said in the same statement.

"From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy."

In return, Britain agreed to further open its market to US ethanol and beef.

That has raised concerns in the chemical industry and among British farmers, even though the meat would still have to meet UK food safety standards.

London is still negotiating for lower tariffs for its steel and aluminium exports to the United States, which has raised its levies to 25 percent.

"We will continue go further and make progress towards zero percent tariffs on core steel products," the trade department said in the statement.