On June 16, 2025, the White House published an Executive Order (EO) containing the general terms of the United States-United Kingdom Economic Prosperity Deal. The White House also published an accompanying Fact Sheet summarizing the agreement. The EO provides for the following tariff-related terms: 

• An annual tariff-rate quota (TRQ) on 100,000 autos from the UK that will be subject to a preferential 7.5% Section 232 duty, plus a 2.5% most-favored-nation duty, for a combined duty rate of 10%. Any auto imports in excess of the TRQ will be subject to the full 232 duties (i.e., 25%). For calendar year 2025, the TRQ will be adjusted to reflect the operative date of May 8, 2025.
• Auto parts that are also covered by Section 232 duties will be subject to a lower 10% total duty rate “provided that they are products of the United Kingdom and are for use in automobiles that are products of the United Kingdom.” Under the current deal, auto parts are not subject to a specific TRQ.
• Aerospace products that fall under the WTO’s Agreement on Trade in Civil Aircraft will no longer be subject to IEEPA Reciprocal Tariffs or to Section 232 duties on steel/aluminum and their derivatives.
• Future plans to establish a TRQ for steel, aluminum and their derivative articles. However, any imports in excess of the TRQ will remain subject to the existing Section 232 duties on steel/aluminum from the UK (currently at 25%). 
• Future plans to negotiate a trade deal on pharmaceuticals and pharmaceutical ingredients.

The provisions contained in the EO will become effective seven days after the EO is published in the Federal Register. To date, the Federal Register notice has not been published.

With this deal going into effect in the near future, companies that import autos and auto parts, aerospace products, and steel/aluminum products from the UK should consider the following added measures as part of their import compliance procedures:

• Conduct a thorough review of the Harmonized Tariff Schedule (HTS) codes applicable to your products from the UK, and consider whether your HTS codes are covered by any of the above Section 232 actions or under the WTO's Agreement on Trade in Civil Aircraft. 
• Evaluate whether your imported products are actually a “product of the United Kingdom.” The auto and aerospace industries, in particular, can involve a complex supply chain using materials sourced from various countries around the world. Even if there is final assembly or manufacturing in the UK, consider whether that is sufficient to transform the product into a “product of the UK” for purposes of obtaining more favorable tariff treatment under the U.S.-UK deal. 
• For importers of auto parts from the UK, gather documents necessary to prove end use, i.e., that the parts are for use in automobiles that are products of the UK.
• Continue monitoring official U.S. government updates on the details for implementing the deal, including how the TRQs for autos and steel/aluminum will be administered.