What's in the US-UK Trade Deal?
- Arne Mielken
- Jun 17
- 5 min read
Zero tariffs for aerospace, cuts for cars – UK importers & exporters, take note! Download the trade deal and summary
After weeks of speculation, it's official: the UK–US trade deal has been signed off by President Donald Trump and UK Prime Minister Keir Starmer at the G7 summit in Canada. The announcement marks a significant moment for trade compliance, customs consultants, importers, and exporters working across the Atlantic.
The deal eliminates US import tariffs on UK aerospace products and reduces tariffs on British car exports from 25% to 10%. For now, steel remains under a 25% tariff—but the deal hints at future reductions, pending US national security assurances on ownership and supply chain integrity.
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Key Questions Covered in This Blog
What are the core elements of the new UK–US trade deal?
Which UK sectors benefit most from the tariff cuts?
What are the remaining trade compliance risks for UK steel exports?
How does the deal impact customs and import regulations in practice?
What should customs professionals and trade compliance teams do now?
Downloads & Resources
Abbreviations Used In This Blog
CBAM – Carbon Border Adjustment Mechanism
EO – Executive Order
FTA – Free Trade Agreement
MFN – Most-Favoured-Nation
JLR – Jaguar Land Rover
BTI – Binding Tariff Information
USMCA – United States-Mexico-Canada Agreement
“This UK–US deal isn’t just political theatre—it’s a practical relief for thousands of exporters and compliance officers. But don’t relax yet—steel’s still hot, and EO 14289 demands due diligence.” – Arne Mielken, Managing Director, Customs Manager
Fancy a Call?Need clarity on what this trade deal means for your customs planning, import regulations, or export compliance strategy? Book a 15-minute free customs consultation today. Visit www.customsmanager.org ⇒ Book Expert Call |
What are the core elements of the new UK–US trade deal?
The core elements of the new UK–US trade deal, announced at the G7 Summit in June 2025, include the removal of all US tariffs on UK aerospace parts and engines, a reduction of import duties on British car exports from up to 27.5% to 10%—though limited to 100,000 vehicles per year—and improved mutual market access in key sectors. In return, the UK agreed to lower trade barriers for certain US agricultural and industrial goods, such as beef and ethanol. This is not a full free trade agreement but rather a targeted package of tariff reductions and regulatory cooperation. Notably, steel and aluminium remain largely excluded from this deal and still face 25% US tariffs under Section 232.
Which UK sectors benefit most from the tariff cuts?
The UK sectors that benefit most from the new tariff cuts are aerospace, automotive, and certain industrial supply chain areas. UK aerospace manufacturers like Rolls-Royce gain full duty-free access to the US market, giving them a competitive edge. British car manufacturers such as Jaguar Land Rover and Aston Martin benefit from the significant reduction in US import duties, although their advantage is capped at 100,000 vehicles annually. Industrial input and machinery exporters also gain from improved market conditions, while UK farmers and agri-tech firms may find new opportunities from reciprocal access arrangements.
What are the remaining trade compliance risks for UK steel exports?
UK steel exports to the US continue to face serious compliance risks. The United States still imposes 25% tariffs on UK steel under Section 232, with no quota relief offered under the new deal. The biggest compliance hurdle is the strict “melted and poured” origin requirement, which disqualifies steel made from imported semi-finished products from tariff relief. UK producers with integrated global supply chains may struggle to meet this rule. Ownership concerns, especially with Chinese-invested firms like British Steel, add another layer of scrutiny. The lack of clear quota terms and ongoing geopolitical tensions further compound the uncertainty for UK steel exporters.
How does the deal impact customs and import regulations in practice?
In practice, the deal requires customs professionals to immediately update tariff schedules, commodity codes, and origin declarations to reflect the revised duties. UK exporters must ensure that automotive and aerospace shipments meet all new origin and product-specific compliance criteria. On the US side, importers need to adjust their customs declarations, valuation, and supporting documentation to benefit from the lower duties. For automotive exports, customs authorities must monitor the 100,000-unit quota closely to avoid misapplication of the preferential rates. For steel, the compliance burden remains unchanged, and customs brokers must apply the existing 25% tariffs unless clear exemption criteria are met.
What should customs professionals and trade compliance teams do now?
Customs professionals and trade compliance teams should act quickly to assess how the new UK–US trade deal affects their product lines and supply chains. They need to conduct tariff impact assessments, verify origin compliance (especially for high-risk goods like steel), and ensure that all documentation aligns with the new preferential treatment rules. Automotive exporters must monitor their volumes against the 100,000-unit limit to avoid breaching the quota. Internal systems and customs software should be updated, and all stakeholders—including suppliers, brokers, and logistics partners—should be briefed. Finally, teams must stay informed about further negotiations, especially in sensitive sectors like steel and aluminium, where additional compliance obligations could emerge.
What This Means for Customs Compliance Teams
If you’re exporting from the UK to the USA:
✅ Review and update HS codes under the new tariff schedule
✅ Notify clients and brokers about reduced import duties
✅ Adjust landed cost models and Incoterms where applicable
✅ Conduct supply chain due diligence for any steel or dual-use goods
✅ Monitor EO 14289 implementation closely – especially for products flagged under Section 232 or other national security measures
What Should Importers & Exporters Do Now?
Run a product-level tariff impact analysis for all UK–US trade flows.
Check whether your products qualify under MFN or other preferences.
Update internal compliance documentation (inc. invoices, declarations, proof of origin).
Inform logistics partners and clients to avoid errors or overpayment of duties.
Consider binding ruling requests (BTIs) for complex classifications.
Conclusion: Celebrate, But Stay Sharp
This UK–US trade agreement is a welcome boost for customs and trade compliance professionals. It reduces cost and friction—especially for aerospace and automotive—but leaves critical gaps in steel and aluminium, which could trigger audits, seizures, or retroactive duties if mismanaged.
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