What was Included in the UK US Tariff Deal?
Published / Last Updated on 09/05/2025
To much fanfare, the ‘OTT’ telephone call between Donald Trump and Keir Starmer confirmed an agreement/deal on tariffs being levied by the US on UK imports from the UK.
We have to say, it is fair enough considering the tariffs across UK and Europe on US tech firms.
UK exports to the US will still have the standard 10% tariff applied but some sectors with higher tariffs have been reduced. Happily, this should present some stability for UK made cars, steel and aluminium.
Tariff Summary
|
US Tariffs on UK Imports |
Old Tariff Rate |
New Tariff Rate |
|
Blanket US tariff rate |
10% |
10% |
|
Cars |
Old tariff 2.5% + 25% (new Trump Tariff) = 27.5% |
10% standard on 1st 100,000 cars, 27.5% on excess. This is the equivalent to UK tariffs on US care imports |
|
Steel and steel manufactured goods |
25% |
scrapped |
|
Aluminium and steel manufactured goods |
25% |
scrapped |
|
Pharmaceuticals |
25% |
In negotiation |
|
|
|
|
|
UK Tariffs on US Imports |
|
|
|
Blanket UK tariff rate |
5.1% |
In negotiation but could be 1.8% |
|
Agricultural products like beef and ethanol, as well as machinery, textiles and chemicals. |
20% up to certain thresholds |
In negotiation |
|
Digital services |
2% in £25m revenue from UK |
Unchanged but US wants it removed |
Comment
Broadly speaking the US and UK have balanced trade for imports/exports so, it makes sense for this to continue. In any event, this is not a tariff free ‘Trade Deal’ in the same way that this week’s UK/India Trade deal has been agreed, it is a tariff agreement, designed to protect and stimulate trade between the two. No doubt, given there is no language barrier, both may wish to enhance trade ‘across the pond’.
We also believe the agreement may pave the way for some room for negotiation between the US and China as well as the US and EU.