A trade deal being worked out between the United States and the United Kingdom contains a tariff carveout for aircraft engine manufacturer Rolls-Royce.
During a press conference at the White House on Thursday, Commerce Secretary Howard Lutnick said the administration plans to exempt Rolls-Royce engines and other “plane parts” from the 10% baseline tariff imposed on most UK imports.
Rolls-Royce engines are used on a number of Airbus aircraft as well as some Boeing 777s and 787s.
The Rolls-Royce Trent XWB powers the Airbus A350, which Delta operates. Rolls-Royce’s Trent 7000 powers the A330neo, also flown by Delta in the U.S.
Lutnick’s comments came as an aside as President Donald Trump discussed the broader trade agreement between the two countries. For several minutes Trump spoke with Prime Minister Keir Starmer on the phone as the press listened, and both leaders praised the deal as a defining moment in the U.S.-U.K. relationship. The agreement has not been finalized, but both Trump and Starmer said they expect it will be soon.
White House officials said the new trade terms will rebalance what had been an unfair system for American workers and companies while also helping Britain protect its own citizens economically. The country will now accept American products that it previously did not, including heavy machinery and beef, they said.
“They’re opening up their country,” Trump added. “Their country is a little closed and we appreciate it.”
The President also told reporters that he’s agreed to lower tariffs on British automobiles. The rate had been 25%, but that figure has been lowered to 10% for high-end cars made by companies like Bentley, Jaguar, and Rolls-Royce. Luxury cars are “special” and limited in number, Trump said, so they do not threaten the viability of major American automakers.
Rolls-Royce Holdings, which makes aircraft engines and marine propulsion systems, is a separate company from Rolls-Royce Motor Cars Limited, which makes automobiles.
