United Kingdom Tariff News and Tracker

US UK Trade Deal Faces Challenges: Tariff Tensions Persist as Spirits and Automotive Sectors Navigate Complex Economic Landscape


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Today’s United Kingdom Tariff News and Tracker brings listeners up to date on the latest developments in US-UK trade relations. The US and UK Economic Prosperity Deal, announced in May 2025, continues to shape the tariff landscape for both nations. Under the agreement, the US granted UK exporters duty-free access for aerospace products, a 100,000 vehicle quota with 10% tariffs for automotive parts, and committed to implementing steel quotas and reallocating 13,000 metric tonnes of beef quota access. The UK reciprocated with duty-free quotas of 13,000 metric tonnes for US beef, eliminated tariffs on the existing 1,000 metric tonne beef quota, and established a 1.4 billion litre quota for US ethanol. Implementation began in July 2025, with several measures still pending regulatory finalisation.

Recent updates show that President Trump signed a new executive order updating the US reciprocal tariff system, which took effect for goods entering the country from November 13, 2025. This order removed certain agricultural products from the list of items facing extra duties but did not extend this relief to imported spirits from the UK. As a result, tariffs on UK spirits such as Scotch whisky remain unchanged, putting $1 billion in US sales at risk and potentially leading to 12,000 job losses in the hospitality industry.

The current tariff rate for most UK goods under the Economic Prosperity Deal is 10%, with specific quotas and exemptions for key sectors. However, the situation remains fluid, with ongoing negotiations and potential legal challenges. A case before the Supreme Court could see Trump’s tariffs overturned, which might also affect the low rates granted to the UK this summer.

Listeners should stay informed as the US continues to adjust its reciprocal tariff rates, with recent executive orders modifying rates for various countries. The UK’s position in this evolving landscape is crucial, especially as both nations work to finalise and implement the remaining measures of their trade deal.

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United Kingdom Tariff News and TrackerBy Inception Point Ai