Tariff Relief Under U.S.–U.K. Deal

27 June 2025 05 MINS. Read USA

On June 16, 2025, the White House issued Executive Order (EO) – Implementing the General Terms of the United States of America – United Kingdom Economic Prosperity Deal. The EO details the commitments made by the U.S. regarding certain imports from the United Kingdom (U.K.), on automobiles and parts, pharmaceuticals and ingredients, steel and aluminum, and aerospace products. The tariff changes established will take effect on June 30, 2025.

The deal includes billions of dollars of increased market access for American exports, especially for beef, ethanol, and certain other American agricultural exports. In addition, the United Kingdom will reduce or eliminate numerous non-tariff barriers that unfairly discriminate against American products, hurt the United States’ manufacturing base, and threaten the national security of the United States.

Key Highlights

Automobiles

The U.S. will establish an annual tariff-rate quota of 100,000 vehicles classified in heading 8703 of the Harmonized Tariff Schedule of the United States (HTSUS) that are products of the U.K.

Automobiles imported into the U.S. within the tariff-rate quota shall instead be subject to a 7.5% tariff, in addition to the most-favored-nation rate for automobiles of 2.5% [2025 shall be limited to 65,205 passenger vehicles].
Imports in excess of the tariff-rate quota shall remain subject to the duties imposed by Proclamation 10908- Section 232 on automobiles at 25%, in addition to the most-favored-nation rate for automobiles of 2.5%.
The tariff-rate quota shall be effective June 30, 2025, by application of additional HTSUS classification number 9903.94.31 that sets forth the ordinary customs duty treatment for certain passenger vehicles that are products of the U.K. and classified under the following subheadings:
- 8703.22.01
- 8703.23.01
- 8703.24.01
- 8703.31.01
- 8703.32.01
- 8703.33.01
- 8703.40.00
- 8703.50.00
- 8703.60.00
- 8703.70.00
- 8703.80.00
- 8703.90.01

Auto Parts

Auto parts specified in note 33 (g) to subchapter III of chapter 99 of the HTSUS that would otherwise be subject to a 25% tariff under Section 232 – Auto Parts, shall instead be subject to a total tariff of 10% (including any most-favored-nation tariffs), provided they are products of the U.K. and are for use in automobiles that are products of the U.K.

Effective June 30, 2025, additional HTSUS number 9903.94.32 sets forth the ordinary customs duty treatment for parts of passenger vehicles and light trucks that are products of the U.K. classifiable in the following statistical reporting numbers of the HTSUS:

4009.12.0020; 4009.22.0020; 4009.32.0020; 4009.42.0020; 4011.10.1010; 4011.10.1020; 4011.10.1030; 4011.10.1040; 4011.10.1050; 4011.10.1060; 4011.10.1070; 4011.10.5000; 4011.20.1005; 4011.20.1015; 4012.19.8000; 4012.20.6000; 4013.10.0010; 4013.10.0020; 4016.99.6010; 7007.21.5100; 7009.10.0000; 7320.10.3000; 7320.10.6015; 7320.10.6060; 7320.10.9015; 7320.10.9060; 7320.20.1000; 8301.20.0030; 8301.20.0060; 8302.10.3000; 8302.30.3010; 8302.30.3060; 8302.30.6000; 8407.31.0080; 8407.32.2040; 8407.32.2080; 8407.32.9040; 8407.32.9080; 8407.33.3040; 8407.33.3080; 8407.33.6040; 8407.33.6080; 8407.33.9040; 8407.33.9080; 8407.34.0530 8407.34.0560; 8407.34.0590; 8407.34.1400; 8407.34.1800; 8407.34.2500; 8407.34.3530; 8407.34.3590; 8407.34.4400; 8407.34.4800; 8407.34.5500; 8408.20.2000; 8409.91.1040; 8409.99.1040; 8413.30.1000; 8413.30.9030; 8413.30.9060; 8413.30.9090; 8413.91.1000 8413.91.9010; 8414.30.8030; 8414.59.3000; 8414.59.6540; 8414.80.0500; 8415.20.0000; 8421.23.0000; 8421.32.0000; 8425.49.0000; 8426.91.0000; 8431.10.0090; 8482.10.1040; 8482.10.1080; 8482.10.5044; 8482.10.5048; 8482.20.0020; 8482.20.0030; 8482.20.0040; 8482.20.0061; 8482.20.0070; 8482.20.0081;
8482.40.0000; 8482.50.0000; 8483.10.1030; 8483.10.3010; 8483.10.3050; 8501.32.2000; 8501.32.4500; 8501.32.5520; 8501.32.5540; 8501.32.6100; 8501.33.2040; 8501.33.2080; 8501.33.3000; 8501.33.4040; 8501.33.4060; 8501.33.6100; 8501.34.3000; 8501.34.6100; 8501.40.2020; 8501.40.2040; 8501.40.4020; 8501.40.4040; 8501.40.5020; 8501.40.5040; 8501.40.6020; 8501.40.6040; 8501.51.2020; 8501.51.2040; 8501.51.4020; 8501.51.4040; 8501.51.5020; 8501.51.5040; 8501.51.6020; 8501.51.6040; 8501.52.4000; 8501.52.8020; 8501.52.8040; 8507.10.0030; 8507.10.0060; 8507.10.0090; 8507.60.0010; 8507.60.0020; 8507.90.4000; 8507.90.8000; 8511.10.0000; 8511.20.0000; 8511.30.0040; 8511.30.0080; 8511.40.0000; 8511.50.0000; 8511.80.2000; 8511.80.6000; 8511.90.6020; 8511.90.6040; 8512.20.2040; 8512.20.2080; 8512.20.4040; 8512.20.4080; 8512.30.0020; 8512.30.0030; 8512.30.0040; 8512.40.2000; 8512.40.4000; 8512.90.2000; 8512.90.6000; 8512.90.7000; 8519.81.2000; 8525.60.1010; 8527.21.1500 8527.21.2525; 8527.21.4080; 8527.29.4000; 8527.29.8000; 8539.10.0010; 8539.10.0050; 8544.30.0000; 8706.00.0520; 8706.00.1520; 8706.00.1540; 8706.00.2500; 8707.10.0020; 8707.10.0040; 8707.90.5060 8707.90.5080;
8708.10.3020; 8708.10.3030; 8708.10.3040; 8708.10.3050; 8708.10.6010; 8708.10.6050; 8708.21.0000; 8708.22.0000; 8708.29.1500; 8708.29.2120; 8708.29.2130; 8708.29.2140; 8708.29.2500; 8708.29.5110; 8708.29.5125; 8708.29.5160; 8708.30.1010; 8708.30.1090; 8708.30.5020; 8708.30.5030; 8708.30.5040; 8708.30.5090; 8708.40.1110; 8708.40.1150; 8708.40.7000; 8708.40.7570; 8708.40.7580; 8708.50.1110; 8708.50.1150; 8708.50.3110; 8708.50.3150; 8708.50.5110; 8708.50.5150; 8708.50.6100; 8708.50.6500; 8708.50.7000; 8708.50.7500; 8708.50.7900; 8708.50.8100; 8708.50.8500; 8708.50.8900; 8708.50.9110; 8708.50.9150; 8708.50.9300; 8708.50.9500; 8708.50.9900; 8708.70.0500; 8708.70.1500; 8708.70.2500; 8708.70.3500; 8708.70.4530; 8708.70.4546; 8708.70.4548; 8708.70.4560; 8708.70.6030; 8708.70.6045; 8708.70.6060; 8708.80.0300; 8708.80.0500; 8708.80.1300; 8708.80.1600; 8708.80.5100; 8708.80.5500; 8708.80.6000; 8708.80.6510; 8708.80.6590; 8708.91.1000; 8708.91.5000; 8708.91.6000; 8708.91.6500; 8708.91.7510; 8708.91.7550; 8708.93.6000; 8708.93.7500; 8708.94.1000; 8708.94.5000; 8708.94.6000; 8708.94.6500; 8708.94.7000; 8708.94.7510; 8708.94.7550; 8708.95.0500; 8708.95.1000; 8708.95.2000; 8708.99.5300; 8708.99.5500; 8708.99.5800; 8708.99.6805; 8708.99.6810; 8708.99.6890; 8716.90.5010; 8716.90.5048; 8716.90.5060; 9015.10.4000; 9015.10.8000; 9029.10.4000; 9029.10.8000; 9029.20.4080; 9401.20.0000

Aerospace Products

Aerospace products of the U.K. that fall under the World Trade Organization Agreement on Trade in Civil Aircraft, the tariffs imposed through the following Presidential actions and subsequent amendments to those actions shall no longer apply, effective June 30, 2025.

Tariffs no longer applicable

Executive Order 14257, as amended [Reciprocal Tariffs]
Proclamation 9704, as amended [Section 232 – Aluminum Tariffs]
Proclamation 9705, as amended [Section 232 – Steel Tariffs]

Additional HTSUS

As provided in heading 9903.96.01, additional duties imposed by heading 9903.01.25, 9903.81.94, 9903.81.96, 9903.81.97, 9903.81.98, 9903.85.12, 9903.85.13, 9903.85.14, 9903.85.15 shall not apply to articles of civil aircraft (all aircraft other than military aircraft); their engines, parts, and components; their other parts, components, and subassemblies; and ground flight simulators and their parts and components of the United Kingdom, that otherwise meet the criteria of General Note 6 of HTSUS, and classifiable in the following provisions of the HTSUS, but regardless of whether a product is entered under a provision for which the rate of duty “Free (C)” appears in the “Special” subcolumn:

3917.21.00, 3917.22.00; 3917.23.00; 3917.29.00; 3917.31.00; 3917.33.00; 3917.39.00; 3917.40.00; 3926.90.45; 3926.90.94; 3926.90.96; 3926.90.99; 4008.29.20; 4009.12.00; 4009.22.00; 4009.32.00; 4009.42.00; 4011.30.00; 4012.13.00; 4012.20.10; 4016.10.00; 4016.93.50; 4016.99.35; 4016.99.60; 4017.00.00; 4504.90.00; 4823.90.10; 4823.90.20; 4823.90.31; 4823.90.40; 4823.90.50; 4823.90.60; 4823.90.67; 4823.90.70; 4823.90.80; 4823.90.86; 6812.80.90; 6812.99.10; 6812.99.20; 6812.99.90; 6813.20.00; 6813.81.00; 6813.89.00; 7007.21.11; 7304.31.30; 7304.31.60; 7304.39.00; 7304.41.30; 7304.41.60; 7304.49.00; 7304.51.10; 7304.51.50; 7304.59.10; 7304.59.20; 7304.59.60; 7304.59.80; 7304.90.10; 7304.90.30; 7304.90.50; 7304.90.70; 7306.30.10; 7306.30.30; 7306.30.50; 7306.40.10; 7306.40.50; 7306.50.10; 7306.50.30; 7306.50.50; 7306.61.10; 7306.61.30; 7306.61.50; 7306.61.70; 7306.69.10; 7306.69.30; 7306.69.50; 7306.69.70; 7312.10.05; 7312.10.10; 7312.10.20; 7312.10.30;
7312.10.50; 7312.10.60; 7312.10.70; 7312.10.80; 7312.10.90; 7312.90.00; 7322.90.00; 7324.10.00; 7324.90.00; 7326.20.00; 7413.00.90; 7608.10.00; 7608.20.00; 8108.90.60; 8302.10.60; 8302.10.90; 8302.20.00; 8302.42.30; 8302.42.60; 8302.49.40; 8302.49.60; 8302.49.80; 8302.60.30; 8307.10.30; 8307.90.30; 8407.10.00; 8408.90.90; 8409.10.00; 8411.11.40; 8411.11.80; 8411.12.40; 8411.12.80; 8411.21.40; 8411.21.80; 8411.22.40; 8411.22.80; 8411.81.40; 8411.82.40; 8411.91.10; 8411.91.90; 8411.99.10; 8411.99.90; 8412.10.00; 8412.21.00; 8412.29.40; 8412.29.80; 8412.31.00; 8412.39.00; 8412.80.10; 8412.80.90; 8412.90.90; 8413.19.00; 8413.20.00; 8413.30.10; 8413.30.90; 8413.50.00; 8413.60.00; 8413.70.10; 8413.70.20; 8413.81.00; 8413.91.10; 8413.91.20; 8413.91.90; 8414.10.00; 8414.20.00; 8414.30.40; 8414.30.80; 8414.51.30; 8414.51.90; 8414.59.30; 8414.59.65; 8414.80.05; 8414.80.16; 8414.80.20; 8414.80.90; 8414.90.10; 8414.90.30; 8414.90.41; 8414.90.91; 8415.10.60; 8415.10.90; 8415.81.01; 8415.82.01; 8415.83.00; 8415.90.40; 8415.90.80; 8418.10.00; 8418.30.00; 8418.40.00; 8418.61.01; 8418.69.01; 8419.50.10; 8419.50.50; 8419.81.50; 8419.81.90; 8419.90.10; 8419.90.20; 8419.90.30; 8419.90.50; 8419.90.85; 8421.19.00; 8421.21.00; 8421.23.00; 8421.29.00; 8421.31.00; 8421.32.00; 8421.39.01; 8424.10.00; 8425.11.00; 8425.19.00; 8425.31.01; 8425.39.01; 8425.42.00; 8425.49.00; 8426.99.00; 8428.10.00; 8428.20.00; 8428.33.00; 8428.39.00; 8428.90.03; 8443.31.00; 8443.32.10; 8443.32.50; 8471.41.01; 8471.49.00; 8471.50.01; 8471.60.10; 8471.60.20; 8471.60.70; 8471.60.80; 8471.60.90; 8471.70.10; 8471.70.20; 8471.70.30; 8471.70.40; 8471.70.50; 8471.70.60; 8471.70.90; 8479.89.10; 8479.89.20; 8479.89.65; 8479.89.70; 8479.89.95; 8479.90.41; 8479.90.45; 8479.90.55; 8479.90.65; 8479.90.75; 8479.90.85; 8479.90.95; 8483.10.10; 8483.10.30; 8483.10.50; 8483.30.40; 8483.30.80; 8483.40.10; 8483.40.30; 8483.40.50; 8483.40.70; 8483.40.80; 8483.40.90; 8483.50.40; 8483.50.60; 8483.50.90; 8483.60.40; 8483.60.80; 8483.90.10; 8483.90.20; 8483.90.30; 8483.90.50; 8483.90.80; 8484.10.00; 8484.90.00; 8501.20.50; 8501.20.60; 8501.31.50; 8501.31.60; 8501.31.81; 8501.32.20; 8501.32.55; 8501.32.61; 8501.33.20; 8501.33.30; 8501.33.61; 8501.34.61; 8501.40.50; 8501.40.60; 8501.51.50; 8501.51.60; 8501.52.40; 8501.52.80; 8501.53.40; 8501.53.60; 8501.61.01; 8501.62.01; 8501.63.01; 8501.71.00; 8501.72.10; 8501.72.20; 8501.72.30; 8501.72.90; 8501.80.10; 8501.80.20; 8501.80.30; 8502.11.00; 8502.12.00; 8502.13.00; 8502.20.00; 8502.31.00; 8502.39.00; 8502.40.00; 8504.10.00; 8504.31.20; 8504.31.40; 8504.31.60; 8504.32.00; 8504.33.00; 8504.40.40; 8504.40.60; 8504.40.70; 8504.40.85; 8504.40.95; 8504.50.40; 8504.50.80; 8507.10.00; 8507.20.80; 8507.30.80; 8507.50.00; 8507.60.00; 8507.80.82; 8507.90.40; 8507.90.80; 8511.10.00; 8511.20.00; 8511.30.00; 8511.40.00; 8511.50.00; 8511.80.20; 8511.80.40; 8511.80.60; 8514.20.40; 8516.80.40; 8516.80.80; 8517.13.00; 8517.14.00; 8517.61.00; 8517.62.00; 8517.69.00; 8517.71.00; 8518.10.40; 8518.10.80; 8518.21.00; 8518.22.00; 8518.29.40; 8518.29.80; 8518.30.10; 8518.30.20; 8518.40.10; 8518.40.20; 8518.50.00; 8519.81.10; 8519.81.20; 8519.81.25; 8519.81.30; 8519.81.41; 8519.89.10; 8519.89.20; 8519.89.30; 8521.10.30; 8521.10.60; 8521.10.90; 8522.90.25; 8522.90.36; 8522.90.45; 8522.90.58; 8522.90.65; 8522.90.80; 8526.10.00; 8526.91.00; 8526.92.10;
8526.92.50; 8528.42.00; 8528.52.00; 8528.62.00; 8529.10.21; 8529.10.40; 8529.10.91; 8529.90.04; 8529.90.05; 8529.90.06; 8529.90.09; 8529.90.13; 8529.90.16; 8529.90.19; 8529.90.21; 8529.90.24; 8529.90.29; 8529.90.33; 8529.90.36; 8529.90.39; 8529.90.43; 8529.90.46; 8529.90.49; 8529.90.55; 8529.90.63; 8529.90.68; 8529.90.73; 8529.90.77; 8529.90.78; 8529.90.81; 8529.90.83; 8529.90.87; 8529.90.88; 8529.90.89; 8529.90.93; 8529.90.95; 8529.90.97; 8529.90.98; 8531.10.00; 8531.20.00; 8531.80.15; 8531.80.90; 8536.70.00; 8539.10.00; 8539.51.00; 8543.70.42; 8543.70.45; 8543.70.60; 8543.70.80; 8543.70.91; 8543.70.95; 8543.90.12; 8543.90.15; 8543.90.35; 8543.90.65; 8543.90.68; 8543.90.85; 8543.90.88; 8544.30.00; 8801.00.00; 8802.11.01; 8802.12.01; 8802.20.01; 8802.30.01; 8802.40.01; 8805.29.00; 8806.10.00; 8806.21.00; 8806.22.00; 8806.23.00; 8806.24.00; 8806.29.00; 8806.91.00; 8806.92.00; 8806.93.00; 8806.94.00; 8806.99.00; 8807.10.00; 8807.20.00; 8807.30.00; 8807.90.90; 9001.90.40; 9001.90.50; 9001.90.60; 9001.90.80; 9001.90.90; 9002.90.20; 9002.90.40; 9002.90.70; 9002.90.85; 9002.90.95; 9014.10.10; 9014.10.60; 9014.10.70; 9014.10.90; 9014.20.20; 9014.20.40; 9014.20.60; 9014.20.80; 9014.90.10; 9014.90.20; 9014.90.40; 9014.90.60; 9020.00.40; 9020.00.60; 9025.11.20; 9025.11.40; 9025.19.40; 9025.19.80; 9025.80.10; 9025.80.15; 9025.80.20; 9025.80.35; 9025.80.40; 9025.80.50; 9025.90.06; 9026.10.20; 9026.10.40; 9026.10.60; 9026.20.40; 9026.20.80; 9026.80.20; 9026.80.40; 9026.80.60; 9026.90.20; 9026.90.40; 9026.90.60; 9029.10.80; 9029.20.40; 9029.90.80; 9030.10.00; 9030.20.05; 9030.20.10; 9030.31.00; 9030.32.00; 9030.33.34; 9030.33.38; 9030.39.01; 9030.40.00; 9030.84.00; 9030.89.01; 9030.90.25; 9030.90.46; 9030.90.66; 9030.90.68; 9030.90.84; 9030.90.89; 9031.80.40; 9031.80.80; 9031.90.21; 9031.90.45; 9031.90.54; 9031.90.59; 9031.90.70; 9031.90.91; 9032.10.00; 9032.20.00; 9032.81.00; 9032.89.20; 9032.89.40; 9032.89.60; 9032.90.21; 9032.90.41; 9032.90.61; 9033.00.90; 9104.00.05; 9104.00.10; 9104.00.20; 9104.00.25; 9104.00.30; 9104.00.40; 9104.00.45; 9104.00.50; 9104.00.60; 9109.10.50; 9109.10.60; 9109.90.20; 9401.10.40; 9401.10.80; 9403.20.00; 9403.70.40; 9403.70.80; 9405.11.40; 9405.11.60; 9405.11.80; 9405.19.40; 9405.19.60; 9405.19.80; 9405.61.20; 9405.61.40; 9405.61.60; 9405.69.20; 9405.69.40; 9405.69.60; 9405.92.00; 9405.99.20; 9405.99.40; 9620.00.50; 9620.00.60; 9802.00.40; 9802.00.50; 9802.00.60; 9802.00.80; 9818.00.05; 9818.00.07;

Aluminum and Steel Articles and Their Derivative Articles

At a future time, a tariff-rate quota may be established for aluminum articles and derivative aluminum articles and / or steel articles and derivative steel articles that are products of the U.K.

Pharmaceuticals and Ingredients

Both countries will negotiate preferential treatment outcomes on UK pharmaceuticals and pharmaceutical ingredients under Section 232 (currently under investigation).