U.S. and U.K. announce trade deal, modifying tariffs

The U.S. and the U.K. announced on May 8 that the countries made a trade deal. The deal states that the 10% reciprocal tariff imposed on April 2 on U.K. imports remains in effect, but an alternate deal was made for Section 232 tariffs for U.K. autos. Section 232 tariffs for U.K. steel and aluminum are still under negotiation.

Under the deal’s agreements, the first 100,000 vehicles imported to the U.S. each year by U.K. manufacturers will be subject to a 10% duty rate, and any additional vehicles imported each year are subject to a 25% duty rate.

A new trading union for steel and aluminum was also created under the deal.