President Trump issued an executive order implementing the general terms of a trade deal between the United States and the United Kingdom that was agreed to on May 8, 2025. The trade deal seeks to accomplish the following:
- Lower U.S. tariffs on automobiles and automobile parts imported from the U.K. from 25% to 10% applicable to an annual quota of 100,000 vehicles. Imported automobiles in excess of the quota will be subject to the full 25% tariff.
- Remove U.S. tariffs on products of the U.K.’s aerospace sector.
- Commit to negotiate preferential treatment for British pharmaceuticals and their ingredients that align with U.S. supply chain security concerns.
- Establish a tariff rate and quota on steel and aluminum products imported from the U.K. at a later date.
This action comes in the wake of a flurry of tariffs issued by the Trump administration in 2025. The trade deal provides some advantageous outcomes to both parties. For example, the U.S. offers relief to the automotive and aerospace sectors in the U.K. while the U.K. will lower tariffs on U.S. beef and allow duty free importation of ethanol. The executive order indicates that the U.S. tariff reductions on the U.K.s aerospace and automotive sectors will go into effect seven days from publication in the Federal Register. As negotiations continue, Forvis Mazars will continue to monitor and release updates.
For assistance as you navigate the tariff environment, our team at Forvis Mazars can help you develop strategies and solutions to help your business. You can reach out to a team member at Forvis Mazars here. Additionally, for more resources surrounding the current tariff environment, please visit our tariffs resource site here.