Welcome to the October BABN Policy and Trade Update.

September has been a major month for transatlantic engagement, policy, and investment announcements. President Trump's State Visit to the UK was a diplomatic and economic success, featuring the signing of the Technology Prosperity Deal.

The UK Government completed a Cabinet reshuffle, with new appointments in key transatlantic portfolios. SEC Chairman Paul Atkins also visited London, en route to the OECD in Paris. More broadly, UNGA and Climate Week NYC saw attendance from governments globally, including a strong UK delegation.

Looking ahead, the UK Government prepares for its upcoming International Trade Week in November, offering a week of events to support businesses expand their global footprint, in line with its long-term Trade Strategy, announced earlier this year.

See below for a breakdown of policy and trade headlines and our published works.

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President Trump's State Visit to the UK

17-19 September 2025

What happened: US President Donald Trump concluded a landmark second State Visit to the UK, hosted by King Charles III and PM Sir Keir Starmer. The visit underscored the strength of the transatlantic relationship.

Summary: Trump was welcomed with a carriage procession, military honours, and a State Banquet at Windsor Castle. At Chequers, over £150 billion in US investment was announced, including major commitments in AI, nuclear energy, and infrastructure. The Tech Prosperity Deal was also signed with a goal of deepening collaboration in emerging technologies.

BAB welcomed the investment pledges and looks forward to supporting the initiatives that further entrench the transatlantic corridor.

Read more: See our statement of welcome for the State visit on our website here.



UK Cabinet Reshuffle

5-16 September 2025

Overview: PM Starmer completed the first major reshuffle of his premiership. The reshuffle brings new leadership to several departments central to US-UK cooperation, including foreign affairs, trade, investment, and technology.

Key appointments:

• FCDO: Rt Hon Yvette Cooper MP has become Secretary of State for Foreign Affairs, succeeding David Lammy.
• DBT: Rt Hon Peter Kyle MP has been appointed Secretary of State for Business and Trade and President of the Board of Trade. He is expected to prioritise tech and investment partnerships with the US.
• Office for Investment: Jason Stockwood has been named Minister for Investment, jointly serving in DBT and HMT. Similar to Poppy Gustafsson, he will receive a peerage to sit in the House of Lords for his position.
• DSIT: Rt Hon Liz Kendall MP takes over as Secretary of State, following her position at Work and Pensions. Kendall will lead on AI and quantum - key areas under the new Technology Prosperity Deal.

Additional changes of note:

• Rt Hon David Lammy becomes Deputy Prime Minister and Lord Chancellor (Justice Secretary). He is looking to bring a more international aspect to the Deputy Prime Minister role.
• DBT: Sir Chris Bryant MP has been appointed Minister for Trade, succeeding Rt Hon Douglas Alexander MP.
• Lord Peter Mandelson stepped down from his role as UK Ambassador to the US. No replacement has yet been announced, with James Roscoe MVO acting as Chargé d'Affaires in the interim.

Technology Prosperity Deal Signed

18 September 2025

Overview: During the State visit, the US and UK signed the Technology Prosperity Deal (TPD), a landmark agreement to deepen cooperation across AI, civil nuclear energy, and quantum computing.

Key announcements:

• AI: The TPD strengthens collaboration between the US Center for AI Standards and Innovation (CAISI) and the UK AI Safety Institute (AISI). It establishes a flagship AI for Science programme focused on biotechnology and precision medicine, with joint work on data sets, disease research and personalised medicine.
• Civil nuclear energy: The deal aligns the US Nuclear Regulatory Commission and the UK Office for Nuclear Regulation on the streamlining of licensing processes. It targets reactor design reviews within two years and site licensing within one year. The UK also committed to achieving full independence from Russian nuclear fuel by 2028, ensuring a secure transatlantic supply chain. The agreement includes enhanced cooperation on fusion energy R&D, supported by AI.
• Quantum computing: A joint benchmarking taskforce will be established to develop interoperable standards across quantum hardware, software, and algorithms. The partnership aims to accelerate breakthroughs in defence, finance, and energy, as well as build a secure quantum supply chain.

The TPD marks a significant step forward in US-UK tech and energy cooperation. The focus now shifts to supporting its implementation and ensuring the transatlantic corridor remains a global leader in emerging technologies.

Fireside Chat with SEC Chairman Paul Atkins 

12 September 2025

Overview: BritishAmerican Business hosted a fireside chat in London with Paul Atkins, Chairman of the US Securities and Exchange Commission (SEC), bringing together senior leaders from the transatlantic financial services community. The discussion focused on regulatory alignment, capital markets resilience, and the future of financial innovation.

Key points:

• The Chairman discussed the SEC's role in global competition in capital markets and economic growth, emphasizing the need for high-quality accounting standards and financial, not double, materiality.

• He highlighted the issuance of a concept release to gather public feedback on updating standards for foreign companies, noting discrepancies in incorporation and trading schemes.

• The Chairman also stressed the importance of clear, predictable rules for digital assets and AI in finance, and the need for international cooperation.

• The appointment of a new enforcement division was highlighted, alongside a focus on transparency and disclosure.

• The discussion also covered the broader US-UK financial services relationship and the potential for retail investors to invest in private markets.

Three action points were raised during the remarks:

1. Review public feedback on the SEC's concept release regarding foreign issuer accommodations.
2. Ensure the IASB achieves full stable funding, prioritizing financial materiality standards.
3. Provide clear, predictable rules for the crypto markets.

Learn more: Read our summary note here.

Monthly Tariff Update

September 2025

New tariffs announced (and paused):

Pharmaceuticals: On 26th September, the US announced a 100% tariff on branded and patented pharmaceutical products, effective 1st October. Exemptions applied to companies building US manufacturing facilities (defined as 'breaking ground' or 'under construction').

Status: The White House paused implementation on 1st October to allow negotiations with large pharma firms.

Movies: A 100% tariff on all movies produced outside the US was also announced. The move was described as an aim to 'revive the American film industry' and reduce increasing foreign competition. It was not clear if this would apply to streaming content, or content co-financed or distributed by US-based entities.

Status: Like pharma, the movie tariff has been paused, pending further review.

Heavy-duty and medium-duty trucks: On 25th September, a 25% tariff rate was announced, under Section 232.

Status: Delayed from 1st October to 1st November.

Cabinets & vanities: On 29th September, new tariffs were announced on timber, furniture, and cabinetry. Effective 14th October, the following rates apply:

1. Kitchen cabinets & Bathroom Vanities: 25% tariff, rising to 50% on 11th January, 2026.
2. Upholstered furniture: 25%, rising to 30% in 2026
3. Softwood lumber: 10%

Status: These are going ahead, at the time of writing.

For further information of BAB's analysis of these tariffs, please contact Fran (flentini@babinc.org).



International Trade Week

3-7 November 2025

Overview:The fifth edition of International Trade Week will take place from Monday 3rd to Friday 7th November. The week will see a number of webinars and in-person events to help businesses develop their exporting knowledge and skills. ITW is free for UK businesses to attend.

The aim of ITW is to help businesses:

• Develop their exporting knowledge and skills
• Understand global opportunities and how to seize them
• Learn about export support from DBT and its partners
• Understand the benefits of trade deals the UK has signed
• Connected with other businesses and experts in international trade

Attend an event: You can sign up to any of the free events across the week here.



Electronic Travel Authorisation (ETA) Update

3-7 November 2025

Overview: The UK Home Office have provided an updated on the UK's ETA process for non-UK nationals travelling to the UK.

Key points:

• Visitors to the UK, including from the US, will need an ETA if they don not need a visa for short stays of up to six months, or do not already have a UK immigration status.

• Eligible visitors taking connecting flights (transiting) and passing through the UK border need an ETA. Those who are transiting and do not pass through the UK border do not currently need an ETA.

• An ETA costs £16 and permits multiple journeys to the UK for stays of up to six months at a time over two years or until the holder's passport expires - whichever is sooner.

• British and Irish citizens do not need an ETA, including dual citizens.

Want to know more? For more information, see here.



Thank you for reading this month's Policy and Trade Update. If you have any feedback or comments please contact us.

BAB participates in and offers policy and trade support to the BritishAmerican Business Network, a group of over 20 independent trade organisations across North America and the U.K. If you would like to learn more about the network and its activities, please visit our website.



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