Implementing the General Terms of the United States of America-United Kingdom Economic Prosperity Deal
The order implements the U.S.-UK Economic Prosperity Deal by immediately cutting tariffs on up to 100,000 British-made vehicles from 25 percent to 10 percent, eliminating tariffs on UK aerospace products, and directing the Commerce Secretary to design future preferential quotas for British steel and aluminum.
It is the first executive order to give concrete tariff effect to a bilateral trade arrangement between the United States and United Kingdom, with self-executing automobile and aerospace changes taking effect within days of publication.
What this order does
What it orders
The order directs three immediate trade-policy changes for products of the United Kingdom. First, it establishes an annual tariff-rate quota of 100,000 automobiles: cars within the quota face a combined 10 percent tariff instead of the otherwise-applicable 25 percent, effective 7 days after Federal Register publication. UK-origin automotive parts for use in UK-made vehicles are similarly reduced to a 10 percent combined tariff. Second, it eliminates the reciprocal and Section 232 tariffs that currently apply to UK aerospace products covered by the WTO Agreement on Trade in Civil Aircraft, effective upon publication of a Commerce Department notice. Third, it authorizes the Secretary of Commerce — at a time the Secretary deems appropriate — to design and establish preferential tariff-rate quotas for UK steel and aluminum articles, contingent on the United Kingdom meeting supply-chain security and ownership requirements.
The Secretary of Commerce must publish Federal Register notices modifying the Harmonized Tariff Schedule within 7 days to carry out the automobile and aerospace changes. Automobiles exceeding the 100,000-unit quota remain subject to the full 25 percent tariff. The steel and aluminum quotas have no fixed implementation deadline; the Secretary may consider UK compliance with the General Terms before acting.
Who it affects
UK automakers and their U.S. importers shipping up to 100,000 cars per year, UK aerospace manufacturers and their U.S. buyers, U.S. steel and aluminum importers who source from UK mills, and American exporters of beef, ethanol, and other agricultural goods whose access to UK markets is tied to the broader deal.
Why it matters
U.S. importers of UK-made vehicles immediately face a 15-percentage-point tariff reduction on up to 100,000 cars annually, lowering costs that could flow to consumers. UK aerospace suppliers lose their Section 232 surcharges, affecting pricing across commercial aviation supply chains. Steel and aluminum importers gain potential future relief if the UK meets security conditions.
What must happen and when
How the order is supposed to work
The Commerce Secretary must publish a Harmonized Tariff Schedule notice within 7 days of the order's Federal Register publication to implement the automobile and aerospace changes; CBP and the International Trade Commission are consulted in that process. The automobile quota becomes operative 7 days after the order itself is published, adjusted for the May 8, 2025 operative date of the General Terms. The steel and aluminum quotas are entirely at the Secretary's discretion and timing, conditioned on the UK satisfying supply-chain security and ownership criteria. No sunset clause is included.
Actions and deadlines
- Publish Federal Register notice modifying the Harmonized Tariff Schedule for automobiles and automotive parts
- Publish Federal Register notice modifying the Harmonized Tariff Schedule for aerospace products
- Automobile tariff-rate quota of 100,000 vehicles at 10 percent takes effect
- Design and establish a tariff-rate quota for UK aluminum articles and derivative aluminum articles
- Design and establish a tariff-rate quota for UK steel articles and derivative steel articles