US-UK Economic Deal Moves Forward: Executive Order Published, Bolstering Bilateral Trade

 June 23, 2025 – Amidst the tumultuous backdrop of escalating international conflicts, the United States government today formalized a key economic policy move, publishing Executive Order 14309, "Implementing the General Terms of the United States of America-United Kingdom Economic Prosperity Deal," in the Federal Register. The Executive Order, signed by President Donald Trump on June 16, 2025, marks a significant step towards cementing a landmark trade agreement between the two nations.

The publication in the Federal Register, the official journal of the U.S. government that contains agency rules, proposed rules, and public notices, signifies that the directives within the Executive Order are now officially in effect, paving the way for the implementation of the "General Terms" of the Economic Prosperity Deal (EPD) announced by President Trump and UK Prime Minister Keir Starmer on May 8, 2025.

Key Provisions and Impact of the Deal, as outlined in the Executive Order and previous statements:

• Expanded Market Access: The deal aims to provide American companies "unprecedented access to British markets," particularly for agricultural exports such as beef and ethanol, and for various other American goods. The UK, in turn, has committed to reducing or eliminating numerous non-tariff barriers that have historically hindered American products.
• Automotive Tariff Reduction: A major component of the Executive Order is the creation of an annual quota of 100,000 vehicles for UK automotive imports at a significantly reduced 10 percent tariff rate, down from previous levels of up to 27.5 percent. This is expected to be a substantial boost for the UK automotive industry exporting to the US.
• Steel and Aluminum Quotas: The order also facilitates the establishment of tariff-rate quotas at most-favored-nation rates for steel and aluminum articles and certain derivatives from the UK, provided the UK meets specific supply chain security requirements.
• Aerospace Trade: The agreement includes provisions to strengthen aerospace and aircraft manufacturing supply chains by establishing tariff-free bilateral trade in certain aerospace products.
• Pharmaceutical Negotiations: Both countries committed to negotiating "significantly preferential treatment outcomes" on pharmaceuticals and pharmaceutical ingredients from the UK, contingent on the findings of an ongoing U.S. investigation into the sector.

While the world's attention is largely captivated by the evolving geopolitical situation with Iran, the publication of this Executive Order underscores the continued focus of the U.S. administration on its broader economic agenda. The deal is touted by both Washington and London as a means to create jobs, foster economic growth, and deepen the "special relationship" between the two allied nations.

The Federal Register document officially codifies these initial steps, with further negotiations expected to develop and formalize the comprehensive proposals outlined in the General Terms of the EPD.