Global Daily Tax News, New UK-US Trade Deal In Force, (Jul 3, 2025)

The new trade agreement between the UK and the US entered into force on June 30, 2025.

The agreement provides for a concessionary 10 percent tariff rate on up to 100,000 automobile exports to the US market, down from 27.5 percent. Further, the US has removed tariffs on aerospace sector exports, such as engines and aircraft parts.

The US has also reduced its 50 percent tariff on foreign aluminum and steel to 25 percent, which will continue subject to the conclusion of ongoing trade-related talks between the two nations by July 9, 2025.

In return, the UK has offered the US tariff-free access for US ethanol exports capped at 1.4 billion litres. Further, within a quota of 13,000 tonnes, the UK will scrap a 20 percent levy on US beef.