UK–US Partial Trade Agreement: What Importers and Exporters Need to Know

The United Kingdom and United States have reached a partial trade agreement aimed at easing tensions and boosting transatlantic trade, following the UK’s recent deal with India

Automotive Tariffs Reduced: Opportunity for UK Car Exporters

A dramatic reduction in US tariffs on UK manufactured vehicles, from 27.5% down to 10%.

However, the benefit is capped at 100,000 cars annually, closely matching the UK’s current export volume to the US

Steel and Aluminium Tariffs Eliminated: Boost for UK Metal Exporters

IThe US has agreed to eliminate its 25% tariffs on British steel and aluminium, a move that affects around £700 million in annual exports.

Agricultural Trade: Expanded Access With Limitations

The UK has secured market access for beef exports to the U.S., offering new opportunities for UK agricultural exporters. Meanwhile, UK importers will now be able to bring in up to £5 billion in U.S. agricultural products, including ethanol and beef, under duty-free quotas.

Key Benefits for Importers and Exporters in Other Sectors

The deal includes a range of provisions designed to streamline trade flows and reduce costs:

• Preferential treatment for UK aerospace exports, including parts and components.
• Better access for U.S. companies in UK government procurement contracts, opening public sector bidding.
• Simplified customs procedures for U.S. goods entering the UK, reducing friction at borders and accelerating supply chain logistics.

What Tariffs Remain?

Despite the deal, many products are still subject to tariffs:

• A 10% base tariff remains in place for most UK goods entering the U.S.
• Tariffs on pharmaceuticals, digital services, and other key sectors have not yet been addressed.

What This Means for UK–US Trade

While not a full free trade agreement, this deal offers immediate benefits for businesses involved in transatlantic trade. Importers and exporters should review tariff codes, customs procedures, and quotas closely to ensure compliance and optimize savings.

Next steps: Further negotiations are expected to resolve outstanding issues and potentially move toward a broader trade deal in the future.