The UK’s £40 billion aerospace sector is set to benefit significantly from a breakthrough in trade negotiations with the United States, as British aircraft engines and parts are expected to be exempted from new import tariffs.

Under the terms of the evolving economic agreement, major components such as aircraft engines—vital to US manufacturers—will continue entering the American market duty-free. The deal marks a crucial step in protecting around 450,000 UK jobs linked to aerospace manufacturing and maintenance.

Although not explicitly detailed in the initial five-page summary of the agreement released last week, UK government officials confirmed that aerospace components will receive “a specific guarantee of zero tariffs.” The announcement follows a recent US investigation into whether foreign aircraft imports pose national security concerns, raising fears of new barriers.

The exemption is particularly important for companies like Boeing, which relies on British-made engines and parts for its aircraft production and maintenance operations within the US. Meanwhile, a major UK airline group has committed to purchasing $10 billion worth of American-built aircraft, strengthening bilateral industry ties.

The aerospace agreement adds to recent trade breakthroughs for the UK in steel and automotive exports, where tariff reductions have already helped safeguard jobs and boost industrial output.