Trump Administration and UK Sign Trade Deal

Tweet

Jun. 17, 2025
By: Marvin E. McPherson

The Trump administration and the United Kingdom (UK) have reached a trade deal that lowers tariffs for imports into the U.S. and provides reciprocal benefits for U.S. exports to the UK. The current deal provides for relief for automotive, aerospace, aluminum and steel products

Automobiles and Automotive Parts

The trade agreement established a tariff rate quota (TRQ) for UK origin automobiles. Under the TRQ 100,000 automobiles classified in heading 8703 HTS and as further specified in note 33(b) to subchapter III of chapter 99 are subject to a 25% tariff under Proclamation 10908 will instead face a reduced 10% total tariff (7.5% + 2.5% MFN rate). Any imports above the TRQ will remain subject to the full 25% tariff.

The 2025 TRQ will be adjusted to reflect an operative date of May 8, 2025 and become effective 7 days after the order is published in the Federal Register.

Certain UK-origin automotive parts (HTSUS note 33(g)) used in UK automobiles will be subject to a 10% total tariff, rather than the 25% under Proclamation 10908. This reduced tariff becomes effective upon publication of a Federal Register notice by the Secretary of Commerce.

Aerospace Products

Tariffs imposed on UK-origin aerospace products that fall within the World Trade Organization Agreement on Trade in Civil Aircraft identified in Executive Order 14257, Proclamation 9704and Proclamation 9705 are eliminated

Aluminum and Steel Products

Aluminum, steel and their derivative products will be subject to a future TRQ. The date and quota will be establish based on the discretion determined by the Secretary, in consultation with the USTR. The criteria for establishing the TRQs are U.S. national interest and UK’s compliance with the general terms. Until such time aluminum, steel and their derivative products will remain subject to duties under Proclamation 9704.

If you have questions about the UK trade agreement or current tariff rates on products, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.