The United Kingdom (UK) and the United States (US) have concluded a trade deal covering a range of products and promoting market access for goods.
In response to the recent additional tariffs adopted by the US administration, both countries agreed to the following:
- US import duties on UK-origin cars will be reduced from 27.5% to 10% within a quota of 100,000 UK cars.
- US tariffs on UK-origin steel will be eliminated, replacing the current 25% customs duties.
Additionally, the UK-US trade deal includes:
- The elimination of tariffs on imports of US and UK-origin ethanol.
- Reciprocal market access for beef, without compromising food standards on imports, according to the UK government.
The US administration has also announced that this trade deal includes streamlined customs procedures for US exports, the creation of a secure supply chain for pharmaceutical products, and increased competitiveness for US firms in the UK procurement market.
While the 10% reciprocal US tariffs remain in place for other products, the US administration has agreed that the UK will receive preferential treatment in any further tariffs imposed as part of US 232 investigations.
The UK and US have also announced their intention to continue negotiating to remove tariffs and non-tariff barriers. This includes the potential establishment of a UK-US technology partnership to foster collaboration on advanced technology, including space and aerospace. Although the UK Digital Services Tax remains in place, both parties have agreed to work towards concluding a digital trade deal.
