Charles R. Goulding and Aaron Rofe explore how the 2025 UK-US trade agreement revives British manufacturing by cutting tariffs and supercharging cross-Atlantic innovation in 3D printing, aerospace, and automotive design.
The new UK-US trade agreement, signed in May 2025, marks a strategic response to President Trump’s “Liberation Day” tariffs – an abrupt imposition of duties on foreign imports than strained transatlantic trade. While the overarching 10% levy on British goods remains in place, the new deal removes some of the more punitive barriers affecting UK industry, including the removal of section 232 tariffs (25%) on UK steel, aluminum, and aerospace components.
This targeted relief is a lifeline for Britain’s struggling steel industry, which supplies only 35% of domestic demand, and a competitive boost for its world-leading aerospace and manufacturing firms. Under the new terms, up to 100,000 British-made vehicles can enter the US annually at the reciprocal 10% tariff rate; any additional vehicles will be subject to the previously imposed 25% rate. The agreement also strengthens industrial cooperation, as US firms will gain preferential access to high-grade UK components, including next-generation material and additive manufacturing (3D printing) systems. In return, Britain has agreed to increase imports of US beef and ethanol through a lower-tariff quota system, while also reducing non-tariff barriers such as restrictive health and safety standards and import licensing requirements.
At the heart of the reshaped trade relationship are British aerospace and auto industry leaders like BAE Systems, Rolls-Royce, Renishaw, British Airways, and Jaguar Land Rover – companies whose technologies, products, and global partnerships stand to benefit from the improved terms of engagement.
BAE Systems
BAE Systems is a British multinational aerospace, military, and information security company based in London, England. It’s the largest manufacturer in Britain and the largest defense contractor in Europe. With a global footprint and deep ties to the US Department of Defense, BAE is uniquely positioned to benefit from the removal of tariffs on UK aerospace components under the new trade agreement. Central to BAE’s competitive edge is its growing investment in additive manufacturing (AM), more commonly known as 3D printing, a capability that enhances design flexibility, strategic autonomy and reduces costs.
BAE uses AM to fabricate titanium components for the Eurofighter Typhoon, which forms part of the structure that surrounds the jets. The investment of 3D printing enables faster prototyping and custom part production, reducing both lead times and manufacturing costs. AM is also instrumental in the manufacturing of their sixth-generation fighter jet, Tempest. Harnessing AM technology, BAE set an internal target to additively manufacture up to 30% of the Tempest fighter jet to produce the aircraft more efficiently and cost-effectively. The tariff easing on aerospace exports under the new trade agreement gives BAE broader access to the US defense market, facilitating transatlantic collaboration on platforms like Tempest and bolstering Britain’s role in next-gen aerospace systems.
Rolls-Royce
Though often associated with luxury cars, Rolls-Royce is also one of the UK’s most advanced aerospace manufacturers, designing and producing cutting-edge power systems for civil and military aviation. With the removal of US tariffs on UK aerospace components under the new trade agreement, Rolls-Royce is now better positioned to expand into the transatlantic market and continue developing technologies that are reshaping the global aerospace landscape.
At the center of their innovative projects is the Advance3 demonstrator engine, which integrates a new core architecture built for improved fuel efficiency and lower emissions. The engine contains 20,000 parts with a significant number produced using 3D printing. These include complex, lightweight components that benefit from faster iteration, lower part count, and enhanced performance. The addition of ceramic matrix composites (CMCs) offer improved heat resistance, and the printed components have demonstrated structural integrity under extreme conditions, laying the foundation for future production models, such as the UltraFan engine expected to debut in 2025 with 25% greater fuel efficiency than first-generation Trent engines.
AM also plays a crucial role in Rolls-Royce’s Trent XWB Turbofan Jet Engine, which is not a new model but was upgraded and modified with a range of new components using AM. One of the new components was a titanium aero foil that was 3D printed and integrated into the engine’s front bearing housing. The component – one of the largest ever printed for use in a commercial jet engine – helped increase the engine’s thrust output from 84,000 to 97,000 pounds.
In addition to propulsion system development, Rolls-Royce has advanced the use of directed energy deposition (DED) – a laser-based AM technique used for on-wing repairs. This process allows for damaged turbine blades to be rebuilt without removing the engine from the aircraft, which allows Rolls-Royce to significantly reduced downtime and extend component life. With additive technologies embedded across development, production, and maintenance, and transatlantic trade barriers now relaxed, Rolls-Royce is in a great position to strengthen its aerospace leadership in US and UK markets.
Renishaw
Renishaw may not be a household name in the aerospace sector, but its impact is significant. Specializing in metal additive manufacturing and precision metrology, the UK-based company provides high-performing printing systems that enable light, more efficient aerospace components. With the easing of UK-US tariffs on aerospace goods, Renishaw’s technologies look to be increasingly valuable to American manufacturers looking to optimize performance and reduce production time.
At the center of Renishaw’s aerospace projects is the RenAM 500 family, a line of metal 3D printing systems used to manufacture parts for jet engines. The latest iteration, the RenAM 500Q Ultra, incorporates Renishaw’s patented TEMPUS technology – which allows the lasers to begin firing before the powder recoater completes it pass. This innovation cuts build times by 50%, significantly improving output for aerospace and high-volume production applications. The TEMPUS technology represents a critical step toward making metal AM economically viable for manufacturing, especially in cases where build time can pose challenges. With productivity gains, and now easier access to US markets, Renishaw is positioned not only as a hardware supplier, but as a strategic enabler of next-generation aerospace manufacturing on both ends of the Atlantic.
British Airways
Beyond the direct impacts of the new UK-US trade agreement on aerospace manufacturers like BAE Systems, Rolls-Royce, and Renishaw, the broader aerospace has recently seen significant investment. International Airlines Group (IAG), the parent company of British Airways has made a deal to expand its fleet by purchasing 32 new Boeing planes valued at nearly $13 billion, while also adding 21 Airbus planes for its other airlines, Aer Lingus and Iberia, in a deal worth nearly $8 billion. Furthermore, IAG exercise an option from a previous order to buy an additional 12 aircraft from Airbus and 6 from Boeing, bringing their total order to 71 planes. These large-scale investments in new aircraft from major US and European manufacturers highlight the recent growth in the global aviation market as a result of the new UK-US trade agreement.
British Airways is also exploring innovative technologies to enhance operations and sustainability through the potential use of 3D printers to create aircraft parts in the future. The initiative to place these printers at airports globally is driven by the desire to reduce customer delays caused by waiting for replacement parts and decrease emissions caused by transporting these parts around the world. British Airways predicts to use 3D printing for cabin parts such as tray tables, seats, and in-flight entertainment screens, which, although not critical for flight safety, can cause significant flight delays if unavailable for passenger use. A key benefit to using 3D printing for these parts is sustainability, as 3D printed parts can be made significantly lighter compared to being produced through traditional methods. These 3D printed parts can be significantly lighter, weighing up to 55% less than traditional components, with every kilogram saved reducing up to 25 tons of CO2 emissions during the lifespan of an aircraft. Ricardo Vidal, Head of Innovation at British Airways, views 3D printing technology as more important than ever for a sustainable future, a seamless travel experience, and helping British Airways stay at the forefront of airline innovation.
Jaguar Land Rover
Beyond the aerospace industry, the automotive sector, represented by major UK players like Jaguar Land Rover (JLR), is also leveraging advanced techniques such as 3D printing. With British car exports now eligible for a lower 10% tariff in the US (up to 100,000 vehicles annually), JLR has renewed incentive to optimize and reduce time-to-market. Their investment in Stratasy’s Objet500 Connex 3D printer has become integral to that goal through its resin-based rapid prototyping capabilities. The multi-material printer allows JLR to create models with both flexible and rigid properties directly from CAD data, enabling the production of working mechanisms and reducing production cycles. The company’s design studio and engineering teams rely on these capabilities for fit and function testing, styling refinements and human-machine interface components like key fobs and control switches. One example of this is printing a complete, working facia air vent assembly for a Range Rover Sport, combining rigid materials for housing and blades with rubber-like materials for knobs and seals into a single process that was fully functional right off the machine. More than 2,500 parts have been produced on the Connex system, demonstrating both its reliability and centrality to JLR’s prototyping workflow. As automotive competition intensifies, and sustainability targets grow more urgent, JLR’s use of AM helps reduce development cycles and supports light, more efficient designs – giving them a strategic edge in both performance and trade competitiveness.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
As the US and UK reshape their trade relationship with the recent trade agreement, both the aerospace and automotive industries emerge as major beneficiaries. The easing of tariffs and enhanced cooperation unlock new opportunities for British manufacturers – whether it’s BAE Systems, Rolls-Royce, or Renishaw driving forward next-generation aerospace innovation, or Jaguar Land Rover accelerating prototyping and design through AM. Even airlines like British Airways are investing in 3D printing to streamline operations and reduce emissions, signaling the wider industrial shift toward sustainable, tech-driven growth. By removing trade barriers and fostering transatlantic collaboration, the agreement ignites Britian’s industrial base and strengths its global competitiveness in defense and advanced manufacturing.
