LONDON, Aug 28, 2025 (BSS/AFP) - UK exports of vehicles to the United States rebounded in July thanks to a trade agreement between London and Washington that reduced tariffs on the sector, industry data showed Thursday.

Following three months of declines, July exports rose 6.8 percent to almost 10,000 vehicle units, the Society of Motor Manufacturers and Traders said in a statement.

Exports of new vehicles to the US had slumped 55.4 percent year-on-year in May, in between much smaller declines in April and June, the SMMT had previously said.

"The US remains the largest single national market for British built cars, underscoring the importance of the UK-US trade deal, and July's performance illustrates the impact of this deal," the SMMT said.

The agreement, which concluded in May and entered into force on June 30, reduced tariffs on UK car exports to 10 percent on a limit of 100,000 vehicles annually.

US President Donald Trump had imposed a tariff of 27.5 percent in April, hitting demand and forcing manufacturers, including Jaguar Land Rover (JLR) and Aston Martin, to halt or limit shipments.

Almost 80 percent of cars made in the UK last year were exported, mostly to the European Union.

The UK auto sector is dominated by foreign-owned brands, including Japanese giant Nissan and India-owned JLR.

The United States meanwhile is a key market for UK-produced luxury models from companies such as Bentley and Rolls-Royce, which are both under German ownership.