U.S.-U.K. Economic Prosperity Deal

Executive Order 14309 – June 16, 2025

The U.S. and the U.K. have agreed to a historic trade agreement that reduces the tariff on U.K. vehicle and vehicle parts that are exported to the U.S.  It also provides duty-free treatment on civil aircraft engines and components and lays the groundwork for a potential reduction in U.K. steel and aluminum imports based on a quota rate tariff. 

The core commitments to the trade agreement include:

• The U.S. opens access for U.K. exports including beef, ethanol, and pharmaceuticals.

• The U.K. agrees to meet U.S. standards for steel & aluminum supply chain security.

• Both countries commit to tariff-free aerospace trade under the WTO Civil Aircraft Agreement.

• The U.S. and U.K. agree to mutual and future cooperation on addressing national security concerns in trade sectors.

The tariff reductions are summarized as follows:

Category	Benefit to UK Products	Tariff Impact
Automobiles produced in the U.K.	Quota quantity of 65,205 vehicles for 2025 and 100,000 vehicles beginning 2026 and thereafter	10% total quota rate tariff (7.5% + 2.5%) from 25% (full rate if over quota)
Auto Parts for U.K.-produced vehicles	Used in UK-produced vehicles only	10% total tariff from 25%
Aerospace	Civil aircraft engines, parts	0% tariff from 10%
Steel & Aluminum	Within future quota (TBD)	Reduced rate (TBD)

 

In essence, this trade agreement expands market access, reduces tariffs, and strengthens bilateral cooperation in sectors critical to U.S. national security.

 

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. Whether you have questions about tariffs, trade agreements, or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com, call 239-489-9900, or reach out here. 

Contributor: Rebecca Anderson

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.