WHAT’S THE LATEST

On May 8, President Trump and British Prime Minister Keir Starmer announced a trade agreement aimed at strengthening ties and enhancing supply chain resilience between the U.S. and UK. The deal is projected to create $5 billion in new export opportunities for U.S. farmers, ranchers and producers.

WHAT WE KNOW

The agreement:

  • Unlocks more than $700 million in U.S. ethanol exports and $250 million in additional agricultural products, including beef.
  • Increases U.S. firms’ competitiveness in the UK’s procurement market.
  • Streamlines customs procedures for U.S. exports.
  • Establishes high standard commitments around intellectual property, labor and environment.
  • Maximizes the competitiveness and secures the supply chain of U.S. aerospace manufacturers through preferential access to high-quality UK aerospace components.
  • Creates a secure supply chain for pharmaceutical products.
  • Confirms that a reciprocal 10% tariff rate, first announced on Liberation Day, remains in effect.

Pending developments:

  • The U.S. will implement an alternative arrangement for Section 232 tariffs on UK-manufactured automobiles:
    • The first 100,000 UK vehicles imported annually into the U.S. will be subject to a 10% tariff previously at 27.5%.
    • Volumes above this threshold will face a 25% tariff.
  • The U.S will also begin negotiations with the UK on an alternative arrangement to the existing Section 232 tariffs on steel and aluminum.
    • The agreement calls for the creation of a new trading union for steel and aluminum.

WHAT'S NEXT?

Our team is actively monitoring developments day-by-day, ensuring we have the latest information to guide our clients. With 58 U.S. and nine UK locations, SEKO is well positioned to support your international trade operations and help you take advantage of new opportunities created by this deal.

SEKO advises clients to review HS code classifications for products traded with the UK to ensure proper tariff treatment under this new agreement. Additionally, to help manage duty payments under the new tariff structures, clients may consider enrolling in U.S. Customs’ Periodic Monthly Statement (PMS) program to consolidate duty payments and improve cash flow management.

Take Action: Schedule a free 30-minute consultation meeting with our team of experts today to explore how we can keep your supply chain moving smoothly.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.