Trump Signs UK-US Tariff Deal: What It Means for Businesses

On June 16, 2025, President Donald Trump signed an executive order that brought parts of a significant trade deal between the United Kingdom and the United States into effect. This deal marks a step forward for both nations and brings with it changes that could impact various industries, from automobile manufacturing to steel production.

Key Features of the UK-US Tariff Deal

1. Reduced Tariffs on Cars

Under the new agreement, the United States will reduce the tariff on UK-made cars from 25% to 10%, benefiting car manufacturers across the UK, such as Jaguar Land Rover (JLR). This tariff relief provides a competitive edge, particularly as European competitors still face the higher 27.5% tax. The auto industry, which had seen a decline in exports due to the previous tariffs, now has a better outlook for American sales.

2. Steel and Aluminium Tariffs Still in Limbo

One of the major points of contention in the deal is the status of steel tariffs. While the UK government is hopeful that the 25% steel tariff will be reduced, the final terms have not been fully agreed upon. The agreement allows for up to 100,000 cars to enter the US at a reduced tariff, but the steel industry continues to seek clarification on the "melted and poured" rule, which impacts UK exports to the US.

3. Aerospace Products Exemptions

Certain aerospace products will see tariffs removed, which is a significant development for companies in the UK’s aerospace sector. This could help to reduce costs for businesses involved in the manufacturing and export of such goods.

4. Agricultural Impact

As part of the deal, the UK will also remove its 20% tariff on US beef imports, increasing the quota to 13,000 tonnes. This shift benefits American farmers and the US agricultural sector. However, the UK government has assured that food safety standards will remain stringent, meaning that any beef imports will need to comply with UK regulations.

5. Ethanol Import Deal

Another element of the trade deal includes a tariff-free quota of 1.4 billion litres of US ethanol, which previously faced a 19% tariff. While this deal may benefit the US ethanol industry, concerns have been raised in the UK regarding the potential impact on local bioethanol production, with industry leaders warning of job cuts if the UK market isn’t adequately protected.

Potential Challenges and Criticism of the UK-US Tariff Deal

Despite the positive aspects of the deal, there has been significant pushback from various UK industries. Critics argue that the deal’s scope is limited, and it does not address some key concerns, such as the removal of steel tariffs and the impact on British farming.

How 3PL Center Can Help Businesses Navigate Tariff Changes

In addition to the tariff changes, businesses will need to navigate the evolving logistics landscape. For companies facing new import/export regulations, 3PL Center offers expertise in managing cross-border shipments, providing guidance and ensuring compliance with new trade policies. With 3PL Center’s extensive warehousing and fulfillment network, businesses can more efficiently manage their supply chain amidst shifting international trade rules.

The Bigger Picture: A Long Road Ahead

While this deal represents an important step forward, it is not a full free trade agreement. The UK government hopes to negotiate further reductions in tariffs, particularly in the steel sector, but the road to a complete trade agreement remains long and fraught with challenges. For now, British businesses must navigate the existing tariff landscape while staying hopeful that future negotiations will yield better terms.

Key Takeaways from the UK-US Tariff Deal

The UK-US tariff deal may offer some short-term relief for manufacturers, particularly in the automotive and aerospace sectors. However, challenges remain for industries such as steel and agriculture, which still face high tariffs. As the UK continues to negotiate for further tariff reductions, it will be crucial for businesses to stay informed about any future changes that could affect their bottom lines.