Trade deal cuts tariffs on UK metals and vehicles

Announced yesterday (May 8, 2025) by US president Donald Trump, the US-UK Economic Prosperity Deal (EPD) removes 25 per cent tariffs on steel and aluminium goods. Rates on UK car exports to the US have been cut from 27.5 per cent to 10 per cent.

The lower car rate applies to the first 100,000 vehicles exported from the UK to the US each year. Vehicles exported after the quota has been filled will be subject to 25 per cent rates.

The 10 per cent tariff announced by Trump on April 2 still applies to most other UK goods entering the US.

According to Downing Street, work will continue on the remaining sectors such as pharmaceuticals, as well as remaining reciprocal tariffs. However, the US has agreed that the UK will get preferential treatment in any further tariffs imposed as part of Section 232 investigations, which are conducted by the US Department of Commerce to determine if imports threaten US national security.