UK and USA Trade Deal May 2025 – What We Know

On April 2^nd 2025, Donald Trump announced a series of “reciprocal tariffs” on all countries not subject to trade sanctions, with a 10% tariff on almost all imports coming into effect three days later. The UK were among those nations affected, with the “special relationship” between the two countries being called into question.

A 25% tariff was enforced on British steel and 27.5% on cars, some of the UK’s biggest imported products to the States. However, as of the 8^th May 2025, a new trade deal, focusing on specific sectors, has been struck between the UK and the USA.

What We Know About the UK & USA Trade Deal

Although we are currently awaiting the final deal to be announced, here is what we currently know:

• The US have reduced import tax on British motor vehicles, from 27.5% to 10% for the first 100,00 imported cars per year. This means the importer in the States now has to pay 15% less tax to bring these goods in, therefore lowering the sale price to consumers.
• The US have also removed the 25% tariff on British steel and aluminium, providing much-needed breathing room for British steel, after being at breaking point for several weeks.
• In response, the UK government has proposed reciprocal market access to British beef, allowing American farmers to access a tariff-free amount of 13,000 metric tonnes of UK beef. Furthermore, farming groups in the UK had concerns about US beef being on British shelves, as it had been hormone-injected. The deal won’t allow access for American beef to be on British shelves.
• The UK has also removed the tariff on ethanol, a key chemical in the production of beer.

The final details of this deal are yet to be concluded; however, it is a step in the right direction amidst a time of uncertainty regarding American trade.

If you are looking to import goods to and from the UK with the USA, contact our friendly, knowledgeable team at KG Logistics today.