President Trump issued June 16 an executive order to implement the economic prosperity agreement reached last month with the United Kingdom.
For more information on this agreement, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.
Autos. The EO establishes an annual tariff-rate quota under which 100,000 vehicles that are products of the United Kingdom will be subject to a Section 232 tariff rate of 7.5 percent instead of 25 percent (which will apply to imports in excess of the TRQ). The TRQ for 2025 will be adjusted to reflect the May 8 date of the initial U.S.-UK agreement and will be effective seven days after the EO is published in the Federal Register.
Auto parts. The EO lowers from 25 percent to 10 percent the Section 232 tariff on auto parts that are products of the UK and are for use in automobiles that are products of the UK. This change will be effective as of the date a notice making associated changes to the HTSUS is published in the Federal Register.
Aerospace. The EO exempts products of the UK that fall under the World Trade Organization Agreement on Trade in Civil Aircraft from “reciprocal” tariffs and Section 232 tariffs on steel and aluminum. This exemption will be effective as of the date a notice making associated changes to the HTSUS is published in the Federal Register.
Steel and aluminum. The EO provides that at a future “appropriate” time the U.S. will establish separate TRQs for steel, aluminum, and derivative articles that are products of the UK, taking into account factors including the UK’s implementation of the bilateral agreement. The EO indicates that this TRQ aims to ameliorate the Section 232 tariffs on these articles, though it remains unclear whether such tariffs will be eliminated or merely reduced for in-quota imports.
Other. According to a White House fact sheet, the U.S. and UK have also agreed to (1) negotiate preferential treatment for UK pharmaceuticals and pharmaceutical ingredients contingent on the findings of a Section 232 investigation, and (2) adopt a structured, negotiated approach to addressing U.S. national security concerns regarding sectors that may be subject to future Section 232 investigations and UK compliance with certain supply chain security standards.
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