Implementing the General Terms of the United States of America-United Kingdom Economic Prosperity Deal

This executive order implements a U.S.-UK trade deal by establishing a 100,000-vehicle annual tariff-rate quota for UK automobiles at 10% combined tariff (down from 25%), eliminating tariffs on UK aerospace products under the WTO civil aircraft agreement, and authorizing future tariff-rate quotas for UK steel and aluminum contingent on UK supply chain security actions. The order modifies existing Section 232 tariffs while maintaining emergency trade authorities.

Federal Register Open PDF 90 FR 26419

Impact dates

Jun 23, 2025
Automobile tariff-rate quota effective; Secretary must publish HTSUS modification notice
Jun 23, 2025
Aerospace tariff elimination effective upon Federal Register notice publication

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Autos Steel & aluminum Aerospace Agriculture Pharma

Mechanisms

TariffQuotaSubsidy / incentive

Role pressure

MixedImporter — UK auto importers get reduced 10% tariff within quota but face 25% above quota; UK aerospace gets tariff elimination; steel/aluminum benefits uncertain and conditional
MixedDomestic producer — U.S. auto parts suppliers may benefit from UK parts integration; U.S. steel/aluminum producers face potential quota competition if UK meets conditions; U.S. aerospace gains tariff-free UK market access
ProtectiveTrading-partner exporter — UK gains preferential auto quota, aerospace elimination, and potential steel/aluminum quota contingent on compliance; agricultural exporters (beef, ethanol) get increased market access

Geographies

US UK

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

EADSYAirbusAAAlcoaADMArcher Daniels MidlandBABoeingBGBungeCATCaterpillarCENXCentury AluminumCLFCleveland-CliffsCTVACortevaLLYEli LillyFFordGEGE AerospaceGMGeneral MotorsHONHoneywellHYMTFHyundai MotorJNJJohnson & JohnsonLMTLockheed MartinMRKMerckNOCNorthrop GrummanNVSNovartisNUENucorPFEPfizerRTXRTXSTLAStellantis

Confidence: medium · Policy alerts

Key directives

Establish annual tariff-rate quota of 100,000 UK automobiles at 10% combined tariff (7.5% + 2.5% MFN)
Reduce UK automotive parts tariffs to 10% for use in UK automobiles
Eliminate tariffs on UK civil aircraft products under WTO Agreement on Trade in Civil Aircraft
Authorize future tariff-rate quotas for UK steel and aluminum contingent on UK actions
Direct Secretary of Commerce to publish HTSUS modification notice within 7 days of Federal Register publication

Who is ordered

Timeline

Immediate

Automobile tariff-rate quota effective 7 days after Federal Register publication
Aerospace tariff elimination upon Federal Register notice publication
Secretary of Commerce must publish HTSUS modification notice within 7 days of Federal Register publication

Near term (90d)

Automotive parts tariff reduction to 10% upon Federal Register notice
Monitoring of UK compliance with steel/aluminum supply chain security requirements

Long term

Potential steel tariff-rate quota establishment (timing at Secretary's discretion)
Potential aluminum tariff-rate quota establishment (timing at Secretary's discretion)
Pharmaceutical preferential treatment negotiations contingent on Section 232 investigation findings
Structured approach to future Section 232 investigations with UK

Risks & tensions

Steel and aluminum quota timing is discretionary and contingent on UK actions—uncertain if/when implemented
Pharmaceutical provisions are contingent on unfinished Section 232 investigation
UK compliance with supply chain security standards is a condition precedent for steel/aluminum benefits
Potential tension with U.S. steel/aluminum domestic producers who may oppose quota liberalization
Automotive quota of 100,000 vehicles may be binding constraint given UK export capacity