Stars and Stripes Meet Union Jack: New Trade Deal Unlocks Beef Bonanza
Published Date: 6/23/2025
Presidential Document
Summary
The U.S. and the U.K. just kicked off a game-changing trade deal that opens up British markets to American goods like beef and ethanol, while cutting unfair trade barriers. This deal affects American farmers, manufacturers, and car makers, with new quotas and tariffs starting soon to boost exports and protect national security. Expect billions in new trade opportunities and tighter rules on steel, aluminum, and supply chains rolling out in 2025 and beyond.
Analyzed Economic Effects
6 provisions identified: 4 benefits, 0 costs, 2 mixed.
Billions in new market access for farmers
The deal opens British markets and creates billions of dollars of increased market access for U.S. exporters, especially for beef, ethanol, and certain other agricultural products. This is aimed at expanding export opportunities for American farmers and agricultural businesses.
100,000-vehicle UK quota at 10% tariff
The United States establishes an annual tariff-rate quota of 100,000 automobiles that are products of the United Kingdom. Imports within that quota will face a combined tariff of 10 percent (7.5 percent instead of the prior 25 percent, plus the 2.5 percent most-favored-nation rate); the quota is effective 7 days after this order's Federal Register publication and is adjusted for 2025 to reflect the May 8, 2025 operative date.
Reduced tariff for certain UK auto parts
Certain automotive parts that are products of the United Kingdom and are for use in UK automobiles will be subject to a total tariff of 10 percent instead of the 25 percent tariff. This change is effective on the date of the Federal Register notice that will be published consistent with this order (to be published within 7 days of the order's Federal Register publication).
Tariffs lifted for certain UK aerospace products
For products of the United Kingdom that fall under the World Trade Organization Agreement on Trade in Civil Aircraft, the tariffs imposed by specified Presidential actions will no longer apply as of the date of the Federal Register notice described in the order (to be published within 7 days). This establishes tariff-free bilateral trade for certain aerospace products.
Future steel and aluminum tariff-rate quotas
The Secretary, in consultation with the Trade Representative, will at a future time design and establish tariff-rate quotas for aluminum and for steel articles that are products of the United Kingdom. Imports in excess of any such quotas will remain subject to existing duties under the cited proclamations.
Negotiations for UK pharmaceuticals preference
The United States and the United Kingdom committed to negotiate significantly preferential treatment outcomes for pharmaceuticals and pharmaceutical ingredients that are products of the United Kingdom, contingent on the findings of a section 232 investigation and UK compliance with certain supply chain security standards.
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Key Dates
Department and Agencies
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