The terms of the US-UK Economic Prosperity Deal (EPD) provide welcome relief for the sectors most affected by the Trump administration’s tariffs, particularly automotive and steel. What is emerging is an industrial strategy that is focused on key manufacturing sectors, defence, automotive and aerospace built on support for UK steel manufacturing. First with the intervention on British Steel and now securing tariff-free access to the US market for UK steel. Geopolitical stability is under threat and domestic production needs bolstering to avoid economic security vulnerabilities.
The UK being the first country to secure a deal with the Trump administration, since it initiated sweeping new tariffs earlier this year, is a positive sign that the special relationship does carry some weight in this new era for global trade.
The General Terms of the EPD reinforce intentions we welcome, regarding the reduction of barriers to trade and an emphasis on market access for services. The ambition to negotiate digital trade provisions, including pre-arrival processing and digitalised procedures for movement of goods, reflects the strong results that have been produced by pilots that the UK government has previously co-ordinated, with the Chartered Institute and other partners, trialling digital trade corridor technologies.
However, as has been noted, this deal is in the early stages of development and sincere consideration must be given to how this deal is expanded in a meaningful way. We know, from our members, that the 10% reciprocal tariffs introduced earlier this year still mark a significant change for UK exporters and they are feeling the strain.
We look forward to continuing our engagement with the UK government to reflect the views of the UK trading community throughout this process.
