Britain has outlined how it plans to trade with the world after it leaves the European Union at the end of 2020.
It will replace the European Union’s external tariff with a 10% duty on cars but cut tens of billions of pounds of supply chain charges.
This will pave the way for trade deals with the United States and the Brussels-based bloc, helping JLR in particular compete with Audis and Mercedes-Benz models made in the US. But it could lead to matching tariffs from America in retaliation.
Britain said the UK Global Tariff would be simpler and cheaper than the EU’s Common External Tariff and apply to countries with which it has no agreement and removes all tariffs below 2%.
“Our new Global Tariff will benefit UK consumers and households by cutting red tape and reducing the cost of thousands of everyday products,” said International Trade Secretary Liz Truss. The government said tariffs would be eliminated on a wide range of products, with 60% of trade coming into the UK tariff-free on WTO terms or through existing preferential access.
The UK will keep tariffs on products competing with industries such as agriculture, automotive and fishing, and remove levies on £30 billion pounds of imports entering UK supply chains.