A new trade agreement between the United Kingdom and the United States, reducing tariffs on British exports of automobiles and aerospace equipment, came into effect on Monday, in a move expected to support thousands of jobs across key UK industries.

According to a statement from the UK Department for Business and Trade, tariffs on British-made cars exported to the US have been lowered from 27.5 percent to 10 percent, with the new rate applying to up to 100,000 vehicles annually. Additionally, the 10-percent tariff on a range of aerospace goods, including aircraft engines and components, has been fully removed.

“From today, British car and aerospace manufacturers will benefit from major tariff reductions when exporting to the US,” the department said, highlighting the expected economic boost for two of the country’s flagship export sectors.

Prime Minister Keir Starmer welcomed the deal, calling it a “historic” arrangement that would help protect jobs and reinforce Britain’s industrial base. “Our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy,” he said.

In exchange, the UK has agreed to expand market access for US ethanol and beef—concessions that have prompted concern among British farmers and chemical industry representatives. The government insists all imports must continue to meet the UK’s food safety regulations.

Meanwhile, negotiations are ongoing over the US’s 25 percent tariffs on British steel and aluminium. UK officials said they remain committed to securing reductions, with the aim of eventually eliminating duties on core metal products.

The latest deal marks a partial breakthrough in transatlantic trade relations, which have seen limited progress on a comprehensive agreement since the UK left the European Union.