July 13, 2025

Introduction: The ‘Great Deal’ That’s Great… for Whom?

Earlier this month, UK Prime Minister Rishi Sunak and U.S. President Joe Biden stood before cameras and declared a “historic” transatlantic trade accord between their nations — quickly labeled a “Great Deal” in British media circles.

The agreement has been framed as a breakthrough: a partnership to strengthen ties in electric vehicle development, battery technology, industrial supply chains, and more. On the surface, it looks promising. But for those who bother to read beyond the headlines, the picture shifts — dramatically.

For the UK, this deal is more PR than progress. Especially if you work in design, automotive manufacturing, or high-value export sectors, the realities behind the photo op raise serious concerns. And if you’re a British car designer hoping for broader access to the lucrative U.S. market, you may want to hold your applause.

Section 1: The Headlines vs. The Fine Print

Here’s what the UK government claims the deal delivers:

  • Closer industrial cooperation in green tech and electric mobility
  • A shared regulatory roadmap for battery and digital technologies
  • Access to U.S. clean energy subsidies via “friend-shoring” arrangements
  • Reduction of barriers for some British goods exported to the U.S.

But here’s what isn’t happening:

  • No full free trade agreement
  • No removal of the 10% U.S. import tariff on UK-built cars
  • No reciprocal access to U.S. government procurement markets
  • No concrete commitment to accept UK automotive safety or emissions standards

Put plainly: the UK has opened its market to U.S. vehicles and components, but the U.S. has not returned the favor.


Section 2: How This Affects the Car Design and Automotive Sector

Let’s break it down by what it means for professionals in design, engineering, and the broader auto industry:

🔧 For British Designers and Startups

  • British design studios and EV startups still face a 10% tariff wall trying to enter the U.S. market.
  • American competitors now face reduced barriers selling into the UK — undercutting local innovators.
  • The hope of growing global British EV brands like Arrival, McMurtry, or Callum is now less viable, not more.

🛠️ For Tier 1 & Tier 2 Suppliers

  • British components remain more expensive for U.S. OEMs to import.
  • Meanwhile, U.S. suppliers can enter the UK market with fewer restrictions — likely displacing local jobs and contracts.

🎨 For Car Design Studios

  • Transatlantic collaboration was already happening (e.g., Jaguar design in Coventry influencing U.S. marketing).
  • This deal doesn’t make it easier to launch UK-developed models in the U.S.
  • Instead, it creates an uneven playing field where U.S. studios gain competitive ground in the UK — but not vice versa.

Section 3: Why Is the UK Government Selling This as a “Great Deal”?

The short answer? Political optics.
Post-Brexit, the UK has struggled to land high-profile trade deals. After the collapse of hopes for a full U.S.–UK Free Trade Agreement, any symbolic victory is being inflated into a “landmark.”

From Downing Street’s perspective, it’s better to be seen doing something than to admit stagnation. But from a business and industry lens, this deal is thin on deliverables and heavy on compromises — most of which benefit the U.S.


Section 4: Strategic Consequences for British Automotive

This isn’t just about today’s sales — it’s about the long-term positioning of the UK in the global auto industry. Let’s consider:

EV and Battery Ecosystems

  • The U.S. Inflation Reduction Act (IRA) offers major subsidies — but mostly to North American producers.
  • UK firms were hoping for exemption or shared access. This deal doesn’t meaningfully grant it.
  • Instead, U.S. firms may now invest in UK-based research while keeping manufacturing in the U.S., thanks to domestic incentives.

🔄 Supply Chain Integration

  • British engineering could be absorbed into U.S. programs — but without shared ownership or reciprocal investment.
  • Design IP may flow one way, from the UK to American platforms, not the other way around.

🏭 Manufacturing and Assembly

  • American EVs and trucks could flood the UK market under reduced import barriers.
  • British-built cars still won’t compete fairly in the U.S. due to cost penalties and regulatory red tape.

Section 5: The Illusion of Balance

A truly “great” deal would include:

  • Mutual tariff removal on electric vehicles
  • Recognition of design protection and type approval on both sides
  • Access to U.S. EV tax credits for British-built vehicles
  • Procurement reciprocity (allowing UK firms to bid on U.S. state-funded projects)

None of these are part of the agreement.

Instead, the UK gave up market protections and got vague promises of “cooperation” in return.

This isn’t a 50/50 deal — it’s 70/30 at best. And it reflects a power imbalance that’s been growing since Brexit reduced the UK’s leverage in global trade.


Conclusion: Why UK Designers Should Be Concerned, Not Celebrating

For British car designers, engineers, and mobility entrepreneurs, this deal is not a breakthrough — it’s a back foot.

It means:

  • Your vehicles are still more expensive in the U.S. than they should be.
  • Your government has traded away leverage for headlines.
  • Your American competitors just got an easier ride into your own market.

And the most painful part? You’re still being told to call it a “win.”

Let’s be clear: designers don’t just draw cars — they build value. They help brands express identity, command market share, and compete globally. That work deserves policies that support reciprocal access, real investment, and balanced trade.

Until the UK starts demanding real benefits in return for real concessions, “great deals” like this one will continue to leave the design community short-changed.


About the Author
Cornelis Steenstra is a global car designer and founder of CarDesignTV. With over four decades of experience across Europe, the U.S., and Asia, he has led concept, production, and visualization programs for OEMs and startups alike — and remains a passionate advocate for the role of design in shaping the future of mobility.


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