US Tariff Support

Recent changes to US tariffs have created new challenges and considerations for UK businesses trading with the United States. If you are exporting goods into the US it is essential to understand how these updated tariffs may impact your supply chain, pricing, and compliance requirements.

We will keep you up to date with the latest developments on our webpage which you can find here
 

Economic Prosperity Deal (EPD)

On the 8th May 2025 the UK and the US announced a new trade deal. The deal is known as the ‘Economic Prosperity Deal (EPD)’ and you can read further information on the commitments that have been made and further negotiation areas here

Some of the initial terms (although these may be subject to amendment) include:

• Tariffs: The US will maintain a baseline 10% tariff on most UK goods, while the UK will lower its tariffs on US goods from an average of 5.1% to an expected 1.8%.

• Automobiles and Auto Parts: For automobiles, the US will apply a 10% tariff on up to 100,000 UK vehicles annually; exports above this quota will face a 25% tariff. Previously, the US tariff was 27.5% on UK cars.

• Beef and Ethanol: The US gains new access to the UK market for agricultural products, including beef and ethanol. UK beef will have a tariff-free quota of 13,000 metric tonnes for export to the US. Additionally, the UK will offer a preferential duty-free TRQ of 1.4 billion litres of U.S. ethanol. The U.S. and the UK also agreed to work together to enhance industrial and agricultural market access. 

• Steel and Aluminium: The deal removes the 25% US tariff on UK steel and aluminium, reducing it to zero, which is a major relief for UK metals exporters.

• Pharmaceuticals: The agreement establishes a "secure supply chain" for pharmaceuticals, with both countries committing to negotiate preferential outcomes for medicines and pharmaceutical ingredients.

• Industrial Goods: The US is stated to have secured a $10 billion purchase of Boeing aeroplane parts, supporting aerospace supply chains.
   

Business review on US tariffs has concluded

The process seeking views from businesses and interested stakeholders to shape any future UK action on tariffs has now concluded. 
You can read the statement from the government here
 

Landmark economic deal with United States saves thousands of jobs for British car makers and steel industry

• Britain secures the first US trade deal protecting British business and British jobs, the second landmark deal in Britain’s national interest in a matter of days following the India deal

• Prime Minister delivers on his promise to save UK steel and British car makers – saving thousands of jobs across the country

• US tariffs on automotives immediately slashed from 27.5%, with steel and aluminium reduced to zero

• Unprecedented market access for British farmers with protections on food standards maintained

Read more here

Prime Minister Keir Starmer’s remarks that he delivered at Jaguar Land Rover on the 8th May which you can read here
 

Statement from the BCC

US Trade Deal Provides Welcome Relief 

Reacting to news of a trade deal in principle with the US, Shevaun Haviland, Director General of the BCC, said: “This deal will be met with a huge sigh of relief by many British businesses.  

“The reduction in the 25% tariffs on most of our automotive exports and the removal of levies on steel and aluminium are the biggest wins. 

“These sectors had been left reeling as jobs, investment and sales were all cut or put on hold. This framework agreement will give them some much needed certainty. They will be keen to see it quickly enacted so they can swiftly re-establish orders and supply chains.  

“The news on aerospace, including jet engines is also good news, as is additional protection from tariffs on our pharmaceutical sector.  

“But this must not be the end of the process; we must continue to push the argument for free and fair trade across all economic sectors and that tariffs are a lose-lose position.  

“The commitment to pursue a digital trade deal and make commerce easier in the future is also a worthy ambition. 

“Our bilateral trade is already worth £300bn, we have £500bn invested in the US and it has £700bn of investment stock in our economy.   

“There is a high-level of co-dependency in our economic relationship, and it is in both our interests to continue building upon those strong foundations which have developed over decades. 

“Following on from the India trade deal, the government should be congratulated on what it has achieved this week, but our economy still needs more. 

“Global trading conditions remain precarious. There must be a bold reset agenda with the EU to reduce trade costs, and it must help UK companies seize the opportunities in the fast-growing Indo-Pacific region.”