On June 16, 2025, President Trump signed an executive order to implement the U.S.–U.K. Economic Prosperity Deal. The purpose of this landmark agreement is to expand trade, enhance supply chain security, and address national security concerns. It marks a significant step forward in strengthening economic ties between the United States and the United Kingdom.

At Tradewin, we are closely monitoring the implementation of this agreement to help our clients understand the implications and prepare for the changes ahead.

Key Provisions of the Deal

Automotive Imports

A new tariff-rate quota (TRQ) allows up to 100,000 U.K.-manufactured vehicles to enter the U.S. each year at a reduced 10 percent combined tariff (7.5 percent plus 2.5 percent MFN). Vehicles that exceed this quota will continue to be subject to the standard 25 percent tariff.

U.K.-origin automotive parts used in these vehicles will also qualify for the reduced tariff, encouraging greater integration of U.S.–U.K. automotive supply chains.

Aerospace Products

Tariffs have been lifted on U.K. aerospace goods covered under the WTO Civil Aircraft Agreement. This change supports tariff-free bilateral trade in the aerospace sector and reinforces manufacturing collaboration between the two countries in a strategically important area.

Steel and Aluminum

The U.S. will establish future tariff-rate quotas (TRQs) for U.K. steel and aluminum. These quotas will be contingent on the U.K.’s compliance with supply chain security and ownership transparency, as well as alignment with U.S. national security interests. Imports that exceed the quota will remain subject to existing tariffs.

Pharmaceuticals

The U.S. and U.K. have agreed to negotiate preferential treatment for U.K. pharmaceutical products and active ingredients. Implementation of this provision will depend on the outcome of a Section 232 investigation and the U.K.’s adherence to supply chain security standards.

Strategic Cooperation

The agreement includes a structured framework for addressing future national security-related trade concerns. This agreement contains mechanisms for coordinating Section 232 investigations and joint efforts to strengthen critical sectors such as aerospace and defense.

What This Means for Businesses

This agreement marks a strategic shift in U.S. trade policy, focusing on security, transparency, and resilience in addition to economic growth. For businesses engaged in transatlantic trade, the deal presents both opportunities and new compliance requirements.

Companies can expect:

• Opportunities for tariff savings and expanded market access
• Increased regulatory complexity tied to national security standards
• A greater emphasis on traceability and supply chain integrity

How Tradewin Can Help

Tradewin is dedicated to helping clients navigate the evolving trade landscape. Our team of experts is actively monitoring regulatory updates and implementation timelines to ensure your business remains compliant and competitive in the wake of the U.S.-U.K. Economic Prosperity Deal.

Need help understanding how this deal affects your business? Get in touch with Tradewin’s trade compliance specialists for personalized guidance.