The UK is pushing forward with the recently signed UK-US trade deal, despite a US court ruling that declared several of Donald Trump’s tariffs unlawful. British negotiators remain confident that the deal will benefit key industries including cars, metals, and aerospace, and are aiming for full implementation within weeks.
A British trade delegation spent last week in Washington to discuss the next steps with US officials, focusing on how quickly the agreement can be passed by both the UK Parliament and the US Congress. The talks are taking place even though a federal court ruling last week struck down Trump’s blanket 10% tariffs, stating that congressional approval was necessary. However, an appeals court has since paused that ruling, allowing the tariffs to remain in place during further review.
British officials remain optimistic, believing the ruling will ultimately be overturned by the US Supreme Court, which currently holds a conservative majority. “We are taking this deal seriously and want to ensure British businesses start benefiting as soon as possible,” a UK government source said.
Deal Provisions and Outstanding Issues
Under the terms of the UK-US trade deal, British car manufacturers will be allowed to export up to 100,000 vehicles annually to the US at a 10% tariff rate. However, questions remain over how the US will treat vehicles assembled in the UK using parts sourced from other countries, as well as the treatment of car parts themselves.
Despite the agreement, some British firms have been asked to lower their prices to meet US demand, while others have paused exports due to ongoing uncertainty.
The deal also includes significant concessions for UK steel and aluminium exports, which are expected to face zero tariffs under the agreement. However, Trump’s recent move to double tariffs on global steel and aluminium imports to 50% has raised concerns about how this will affect UK exporters.
Next Steps and Ongoing Negotiations
British officials are hopeful that car tariffs could be formally lifted within two weeks, with reductions on steel, aluminium, and aeroplane parts to follow shortly after. The US has promised the UK a “significantly preferential outcome” on aerospace components, which could see nearly all tariffs eliminated.
Discussions continue regarding pharmaceutical exports, worth around £7 billion annually. Tariff plans for the sector remain unclear, as the Trump administration has yet to specify its stance.
The UK’s negotiating team included the Prime Minister’s business adviser Varun Chandra, head of trade relations Kate Joseph, and deputy national security adviser Jonathan Black. Talks also involved key US figures such as Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and Agriculture Secretary Brooke Rollins. Rollins has urged the UK to open its market further to American food products, but Prime Minister Keir Starmer has firmly rejected lowering UK welfare or food safety standards.
Parallel Gulf Trade Talks Raise Human Rights Concerns
While focusing on finalising the UK-US trade deal, officials are also nearing completion of a controversial £1.6 billion trade agreement with Gulf nations. According to The Guardian, the deal lacks firm commitments on human rights, modern slavery, and environmental protection.
