Implementing the General Terms of the United States of America-United Kingdom Economic Prosperity Deal
This Executive Order (EO 14309), signed June 16, 2025, implements the “General Terms” of a US–UK Economic Prosperity Deal announced May 8, 2025. It creates specific, time-limited tariff preferences and a process for additional tariff-rate quotas (TRQs) to give UK-origin products preferential access to the US market while preserving existing higher duties for imports beyond those quotas. The order aims to expand US exports (notably agricultural goods), ease trade frictions with the United Kingdom, and balance those commercial benefits with US national-security and supply-chain requirements. In practice the EO: (1) establishes a 100,000‑vehicle annual quota for UK cars at a combined 10% tariff (instead of the higher tariffs recently imposed); (2) brings certain UK aerospace products into a tariff‑free bilateral treatment under the WTO civil aircraft agreement; and (3) directs Commerce (with USTR) to design future TRQs for UK-origin steel and aluminum if and when appropriate. The measure is implemented through modifications to the Harmonized Tariff Schedule and is subject to legal limits, agency authorities, and available funding.
Key Points
- 1Automobiles: An annual tariff‑rate quota (TRQ) of 100,000 cars classified under HTSUS heading 8703 that are products of the United Kingdom will be charged 10% total tariff (2.5% Most‑Favored‑Nation (MFN) rate plus a 7.5% preferential rate) instead of the 25% tariff otherwise imposed. Imports above the quota remain subject to the higher duties. The 2025 quota will be prorated to the deal’s operative date. The quota is effective 7 days after Federal Register publication.
- 2- Explanation: A tariff‑rate quota lets a set quantity enter at a lower tariff; excess imports pay a higher rate.
- 3Automotive parts: Specified UK automotive parts that otherwise would face the 25% tariff will instead face a 10% total tariff (including MFN), provided they are UK products for use in UK cars. Effective on publication.
- 4Aerospace: Tariffs applied under prior presidential actions and proclamations (including those tied to trade remedies or national‑security measures) will not apply to UK products covered by the WTO Agreement on Trade in Civil Aircraft, effectively enabling tariff‑free bilateral trade for qualifying aerospace products. Commerce will update the HTSUS within 7 days of publication.
- 5- Explanation: The WTO Agreement on Trade in Civil Aircraft governs tariff treatment for certain aircraft and related products.
- 6Steel and aluminum: The Secretary of Commerce, in consultation with the U.S. Trade Representative (USTR), will at a future date design and establish TRQs for UK-origin aluminum and steel (and derivative articles) consistent with the General Terms. Imports over those quotas will remain subject to the existing higher duties under prior proclamations.
- 7Administrative and legal provisions: Commerce (with ITC and CBP) must publish HTSUS modifications and may issue implementing rules and guidance. The order preserves agency authorities, is subject to law and available appropriations, creates no private legal cause of action, and assigns publication costs to the Department of Commerce.