Secretary of State for Business and Trade ():
1. On 8 May 2025, the Prime Minister and the
President concluded a landmark economic deal between the United
Kingdom and the United States. The deal was defined in the
General Terms for the Economic Prosperity Deal (EPD). Both
countries agreed to begin negotiations on the EPD immediately to
develop and formalise the proposals in the General Terms. The
Government remains relentlessly focused on securing the best
outcomes for UK industry, and ensuring that businesses up and
down the country can feel the benefits of the deal as soon as
possible.
- On 16 June, the Prime Minister and the President agreed
further progress towards that goal.
- As outlined in paragraph 1(c)(i) of the General Terms, the US
will create a 100,000 unit quota for all UK car exports to the
US, reducing US tariffs from 27.5% to 10%. This will be
administered on a quarterly basis. This has been signed by the
President through Executive Order, and we expect that these
arrangements will come into force by the end of the month. This
10% tariff will also apply to UK part exports attendant to
finished passenger cars that UK manufacturers export to the US.
- The UK will implement its commitments in paragraph 1(b) of
the General Terms relating to beef. We will execute the
legislative process to create a preferential duty-free quota for
US beef of 13,000 metric tonnes (mt) per calendar year. Alongside
this, the UK will remove the 20% tariff on US beef imports under
the existing WTO quota shared between the US and Canada of 1,000
mt per year. The UK will lay legislation in Parliament to bring
the quota into effect. Under paragraph 1(b) of the General Terms,
the United States confirmed its commitment to reallocate to the
United Kingdom 13,000 mt of its existing “Other Countries” tariff
rate quota (TRQ) for beef at MFN rates. That re-allocation will
take place as quickly as possible and at the latest by 1 January
2026. As confirmed in the General Terms, the United Kingdom and
the United States affirm that imported food and agricultural
goods must comply with the importing country's sanitary and
phytosanitary (SPS) standards and other mutually agreed
standards. Paragraph 2(a) of the General Terms outlines how the
UK and the US will seek to strengthen bilateral agricultural
trade.
- The UK will also execute the legislative process to create a
preferential duty-free quota for US ethanol of 1.4 billion litres
per year. The UK will lay legislation in Parliament to bring the
quota into effect.
- The US and UK continue to work together at pace to implement
paragraph 1(a) of the General Terms, covering other tariffs. The
US and the UK will continue to work together to conclude this
negotiation and implement reductions as soon as possible. Each
country intends to continue to improve market access under the
EPD.
- The US and the UK will take forward the remaining provisions
contained in paragraph 1(c) of the General Terms. The UK and US
are conducting rapid discussions to create a quota at most
favoured nation (MFN) rates for the export of steel, aluminium
and certain derivative products from the UK to the US and intend
to finalise implementation as soon as possible.
- The US commits to reducing tariffs on imports of aerospace
goods from the UK from current levels back to MFN rates. This has
been signed by the President through Executive Order, and we
expect these arrangements to come into force by the end of the
month.
- Both countries remain focused on securing significantly
preferential outcomes for the export of pharmaceutical products
from the UK to the US and other sectors that may be subject to
Section 232 investigations or other tariff measures.