US-UK Trade Deal Marks A Milestone in Trade Diplomacy – Alinea Customs Positioned to Support Growth

Introduction

The recently signed United States-United Kingdom (US-UK) Economic Prosperity Deal marks a milestone in transatlantic economic relations and trade diplomacy. The Economic Partnership Deal (EPD), announced by the US and UK Government in May 2025, delivers tangible benefits to key British industries, including automotive and steel. With enhanced mutual recognition of regulatory standards, this deal presents a renewed gateway for both regions.

Briefing

Critical to interpretation of the agreement was the reinforcement of the special US-UK trade relationship, identifying that it is a priority of both governments to grow the quality and volume of mutually beneficial trade; remove barriers to trade; and establish a fair and reciprocal trade environment. The trade deal should be considered as a work in progress, a memorandum of understanding that will expand over time to address other areas. UK companies exporting to the US will be encouraged that there are plans to reinforce bilateral trade through delineation of preferential rules of origin.[1]   Currently, UK exports to the U.S. are subject to non-preferential rules of origin, which rely on the ‘substantial transformation test’ when incorporating non-originating components. As the test and supporting Customs Border Protection (CBP) decisions and advanced binding rulings on origin, and common law concerning US Court decisions may be subject to interpretation, a defined preferential criteria for UK origin goods will be welcomed.

Alinea Customs, with its specialist expertise in customs law, international trade agreements, and cross-border logistics, is well positioned to assist British businesses in capitalising on this breakthrough. As a provider of customs clearance services at UK major ports, Alinea Customs plays a crucial role in ensuring compliant, efficient, and cost-effective goods movement across international boundaries.

Commitments outlined in the terms of the EPD – which are not legally binding, include:

• Elimination of the UK’s 20% on-preferential quota of 1,000 metric tonnes (mt) (subject to AGRIM import licence), and implementation of a 0% preferential tariff quota extended to 13,000 mt. In exchange the US has agreed to reallocate a 13,000 mt tariff rate quota (TRQ) for British beef. Further to this arrangement, the UK has offered the US a preferential 0% TRQ of 1 billion litres for US ethanol.
• A quota of 100,000 UK vehicles at a 10% US tariff, with provisions for associated automobile parts.
• A commitment from the UK to meet U.S. security and ownership requirements related to steel and aluminium supply chains. Based upon this, the U.S. will establish a quota at most favoured nation (MFN) rates – currently set at 0%, for UK steel, aluminium and certain derivative steel and aluminium related products.
• Pending the results of a U.S. section 232 investigation on pharmaceuticals, both countries aim to negotiate preferential treatment for pharmaceuticals and their ingredients. The UK also commits to improving the environment for pharmaceutical companies.

A broader framework will be pursued for other sectors potentially subject to tariff actions or investigations, contingent on UK compliance with U.S. supply chain security expectations. The Deal also cites that this will be subject to the findings of related US investigations, or of other tariff measures related to certain sectors.

Non-Tariff Barriers

Increased bilateral market access for agricultural products has been identified as a key bilateral commitment. Both countries have affirmed that they intend to comply with the importing country’s sanitary and phytosanitary controls. The bilateral agreement also commits to increase agricultural cooperation on export verification programs to facilitate greater trade and formalise bilateral engagement through international standard setting bodies. The US and UK each confirm a commitment to accord the conformity assessment bodies of each other favourable treatment concerning areas including procedures, criteria, fees and other conditions related to accrediting, approving, licensing, or otherwise recognising conformity assessment bodies. The existing set of Mutual Recognition Agreements (MRA) is proposed as an area to advance in relation to certain industrial goods. Furthermore, a commitment to discuss respective mutual standards for sectors of interest has been acknowledged, to meet with each other’s relevant domiciled standards development organisation (SDO).

A Game-Changer for UK Manufacturing

The agreement brings an immediate boost to two of the UK’s cornerstone manufacturing sectors: steel and automotive. The removal of Section 232 tariffs—initially introduced under national security provisions by the United States—restores tariff-free access for British steel and aluminium exporters. As a result, thousands of jobs in the UK’s industrial heartlands have been safeguarded.

The UK has negotiated reduced tariffs on car exports to the US—from a previous rate of 27.5%[2] down to 10% for a quota of 100,000 car exports per annum, potentially enhancing the UK’s competitive advantage within the automobile exports industry in comparison to many other regions exporting to the US.

As British companies prepare to scale up operations and re-enter the US market, Alinea Customs offers the guidance and procedural oversight required to ensure full compliance with both UK and US customs requirements. This includes support with Rules of Origin documentation, tariff preference claims, and the application of correct commodity codes—critical for avoiding costly delays and ensuring accurate duty assessments.

Facilitating Access to Trade Agreement Benefits

With deep knowledge of customs regulations and international conventions, Alinea Customs is uniquely equipped to help clients take advantage of the benefits embedded within the new EPA. This includes navigating the intricacies of:

• Rules of Origin (RoO): Alinea provides consultancy on RoO compliance, ensuring products meet the required thresholds for originating status, including sufficient processing and tariff classification changes.
• Regulatory Alignment: The EPA outlines specific protocols for mutual recognition of technical standards. Alinea helps exporters understand and adapt their documentation to comply with both UK and US regulations.
• Duty Optimisation: By administering tariff preference claims and accurate customs valuation, Alinea helps businesses minimise customs duty exposure.

These services are supported by a professionally qualified team and dedicated account management, ensuring that exporters have tailored support throughout the trade process.

Seamless Customs Clearance for Transatlantic Trade

Whether shipping finished vehicles from London Gateway or steel coils through the Port of Immingham, Alinea Customs ensures that every consignment is cleared in accordance with HMRC regulations. With port coverage across all major UK sea, road and airports—including Felixstowe, London Gateway, and Heathrow—Alinea offers true national reach with local expertise.

As international traders grapple with the complexities of tariff schedules, Incoterms®, customs procedure codes, and transport documentation, Alinea Customs provides dedicated support, including:

• Import and export declarations
• Application of inward and outward processing reliefs
• Excise and VAT compliance
• Documentation for audits and regulatory reviews
• EORI and VAT applications
• IPAFFS and quarantine release management

Through use of Alinea Customs’ services business can navigate global trade with confidence.

Strategic Customs Consultancy for Long-Term Growth

Beyond clearance services, Alinea Customs offers strategic consultancy designed to future-proof supply chains and reduce customs-related risks. As the EPD lays the foundation for deeper regulatory cooperation and digital trade integration, British companies will increasingly need to adapt their processes and internal practices.

Alinea Customs’ consultancy team supports this by offering:

• Supply chain mapping to identify preferential sourcing opportunities
• Recommendations for customs procedure optimisation
• Advice on the practical application of international trade laws
• Tailored strategies for freeport operations and temporary admissions

This proactive approach allows clients not only to benefit from the current trade environment but also to remain agile and responsive to future changes in global trade dynamics.

Setting Up with Alinea

Businesses looking to take advantage of the US-UK trade agreement can quickly get started with Alinea Customs. Account setup typically takes only a few hours and requires submission of key business and shipment documentation. Once onboarded, clients benefit from customs support, real-time communication, and expert oversight of all customs processes.

For more information or to speak to an advisor, visit www.alineacustoms.com or contact the team directly at +44 (0) 207 101 4242 or customs@alineacustoms.com.

Conclusion

The US-UK Economic Prosperity Deal represents a renewed era of opportunity for British exporters. Alinea Customs provides guidance for businesses to navigate this evolving landscape, providing the legal expertise, compliance assurance, and operational support needed to thrive in the global marketplace.

Further reading:

• UK Government, ‘US–UK Economic Prosperity Deal’ (8 May 2025) https://assets.publishing.service.gov.uk/media/681d327d43d6699b3c1d2a9d/US_UK_EPD_050825_FINAL_rev_v2.pdf
• UK Government, ‘Landmark economic deal with United States saves thousands of jobs for British car makers and steel industry’ (8 May 2025) https://www.gov.uk/government/news/landmark-economic-deal-with-united-states-saves-thousands-of-jobs-for-british-car-makers-and-steel-industry
• White House, ‘Fact Sheet: U.S.-UK Reach Historic Trade Deal’ (8 May 2025) https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-u-s-uk-reach-historic-trade-deal/

Contact Us

At Alinea Customs, we’re committed to helping businesses navigate the evolving US-UK Economic Prosperity Deal. Our team of advisors provides insight into import, export and trade regulations, ensuring that your business remains compliant.

Please contact us with any questions you may have about how the US-UK Economic Prosperity Deal may affect your trade operations, customs procedures, or product origin documentation. Our team at Alinea Customsis here to support you with expert guidance tailored to your business needs.

[1] UK Government, ‘US–UK Economic Prosperity Deal’ (8 May 2025) 3 https://assets.publishing.service.gov.uk/media/681d327d43d6699b3c1d2a9d/US_UK_EPD_050825_FINAL_rev_v2.pdfaccessed 14 May 2025.

[2] UK Government, ‘Landmark economic deal with United States saves thousands of jobs for British car makers and steel industry’ (8 May 2025) https://www.gov.uk/government/news/landmark-economic-deal-with-united-states-saves-thousands-of-jobs-for-british-car-makers-and-steel-industry accessed 14 May 2025.