Tariffs Update

The NWAA has received many questions about the US–UK tariff agreements in the last quarter, so I’ve compiled a quick update for you.

The UK and US have reached a trade agreement, dubbed the “Economic Prosperity Deal,” which includes tariff reductions and commitments to address trade barriers.

In accordance with an update reported by MakeUK in July:

In May, an announcement was made by the US and UK Governments of a new economic deal to reduce the impact of Section 232 tariffs on Automotive, Aerospace, Steel and Aluminium.

• As of 30 June 2025, elements of the deal have been agreed and ratified. There has been no change to the baseline ten per cent tariff for UK origin goods entering the US market, with the exception of aerospace.
• The 10 percent tariffs have been reduced to zero for aerospace goods which fall under the WTO Agreement on Trade in Civil Aircraft such as engines and aircraft parts.
• UK Automotive manufacturers now have a tariff relief quota, allowing the sector to sell up to 100,000 vehicles to the US at a 10 percent tariff rate, including MFN duty.
• Progress towards zero percent tariffs for core steel products continue to be discussed, but there is no further information on an Aluminium and Steel deal at this stage, for which the tariff rate remains at 25%.