US Tariffs on UK Steel and Aluminium Cut to Zero in Landmark Deal

8 May 2025

The Prime Minister announced a new trade deal with the US on 8 May, just days after unveiling the UK-India FTA.

The US-UK trade deal reduces tariffs on UK steel and aluminium to zero, at a pivotal moment for Britain’s steel industry.  It also slashes tariffs on UK cars from 27.5% to 10% - this lower rate applies to the first 100,000 vehicles exported from the UK to the US each year (101,000 were exported last year)

The deal gives greater US market access for British farmers, while safeguarding UK food standards, says the government. According to an official statement on gov.uk: “In a win for both nations, we have agreed new reciprocal market access on beef – with UK farmers given a tariff free quota for 13,000 metric tonnes. There will be no weakening of UK food standards on imports.” 

The UK tariff on ethanol from the US is being cut to zero.

Work will continue on the remaining sectors, including pharmaceuticals and 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. 

Howard Lutnick, US Secretary of State for Commerce commented that the baseline 10% tariff on UK imports will still remain, but added that Rolls Royce engines will be tariff free.

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