Welcome to the September BABN Policy and Trade Update.

This summer saw an unusual high level of activity around US-UK engagements: Prime Minister Sir Keir Starmer was in Washington in August for meetings at the White House with President Trump and allied leaders. Vice President JD Vance used his vacation in the Cotswolds to meet with Foreign Secretary David Lammy; and teams are busy preparing President Trump's State Visit to the UK on 17-19 September, hosted by HM The King at Windsor Castle. BAB’s own transatlantic engagement included hosting a special reception in Washington, D.C. with the British-American Parliamentary Group, in partnership with BABA Washington D.C., which brought together lawmakers, industry leaders, and policymakers to celebrate and strengthen the transatlantic partnership.

Meanwhile, BAB released its analysis of the US-UK Economic Prosperity Deal (EPD). The paper welcomed the fact that the UK was the first country to secure an agreement with the US and recognised the value of key sectoral wins, such as tariff reductions for autos and aerospace and preferential treatment for potential future Section 232 actions. At the same time, the analysis underlined that the EPD leaves UK exporters worse off than before the US tariff changes introduced earlier this year. The paper highlighted ongoing challenges such as the new baseline 10% tariff on nearly all UK goods, the lack of growth potential in quota arrangements, and uncertainty around how future US trade policy and legal challenges may affect the agreement. BAB concluded that while the EPD is an important first step, it must be seen as a foundation for deeper negotiations to secure broader market access and lasting certainty for UK businesses.

On the UK side, the UK Parliament's Business and Trade Committee opened an inquiry into the UK’s trade with the US, India, and the EU, offering a timely opportunity to assess how the UK government is navigating shifting global conditions. BAB contributed written evidence to this inquiry on behalf of our members, focusing in particular on the UK-US EPD. 

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

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BAB Analysis of the US-UK Economic Prosperity Deal

7 August 2025

What happened: Earlier in August, BAB published its analysis of the US-UK Economic Prosperity Deal.

Summary: This paper, produced in consultation with leading trade associations, BAB member companies, and trade experts, identifies the key elements of the EPD and reviews progress since it was agreed. It also outlines BAB’s recommendations on what should be prioritized as governments seek to bring the agreement to life, focusing on addressing tariffs, reducing non-tariff barriers, digital trade, economic security, and other trade policy issues.

Press release: Commenting on the release of the paper, Duncan Edwards, CEO of BAB, said: “The UK government should be commended for the speed with which they negotiated this agreement. The EPD shows the US is fully committed to its new trade approach, even with its closest allies, but it was significant that the UK was the first to get a deal. There is a lot in the agreement still to be negotiated and only time will tell the extent to which the UK has got better terms than its competitors.”

Read the full analysis: You can read the analysis here.



BAB Submission to Business and Trade Committee Call for Evidence

31 August 2025

Overview: The Business and Trade Committee launched an inquiry into the UK’s trade with the US, India and the EU. The inquiry examined how the UK government’s trade policy is responding to changing global conditions, including recent US tariff actions and the outcomes of new trade agreements..

BAB’s work: BAB submitted a response to this inquiry. Our submission focused on the UK-US Economic Prosperity Deal (EPD) agreed in May, providing an assessment of its value for UK businesses and its implications for the wider trade relationship. We highlighted both the positive elements, such as tariff reductions for key UK sectors and preferential treatment in potential Section 232 actions, as well as the remaining challenges, including higher baseline tariffs than before 'Liberation Day' and uncertainty around future US trade policy.

Learn more: We will be able to share our full response once it's been made public by the Committee.

Tariff Update

August 2025

Your monthly tariff update: here is a breakdown of the latest developments on US tariffs, accurate as of August 22nd

Tariffs currently in force

• China: Tariffs remain elevated. Under the May easing agreement, US tariffs on Chinese goods fell from 145% to 30%, while Chinese tariffs on US imports dropped to 10%. Effective rates on most Chinese goods still exceed 30%. Negotiations are ongoing.
• Steel, Aluminium & Copper: Section 232 tariffs doubled in June to 50% and now also apply to copper, in addition to derivative products.
• Autos: Section 232 tariffs remain at 25%, though reductions apply to some UK and EU vehicles under new agreements.
• Venezuelan Oil: Tariffs remain at 25% for imports from countries importing Venezuelan crude.
• Baseline 10% tariff: The universal tariff on nearly all imports introduced in April remains in effect, with exemptions for products already subject to Section 232.
• Fentanyl-related products: 25% tariffs continue on imports from non-USMCA countries; Canada and Mexico remain exempt.

New trade agreements

• UK: Quota-based exemptions for UK steel and aluminium (0% tariff), and a reduction of car tariffs to 10% (down from 25%) for up to 100,000 UK-made vehicles annually. Expanded access for US agricultural exports was also agreed.
• EU: US tariffs consolidated at 15% (cap) on many EU goods, auto tariffs reduced from 25% to 15% once EU barriers are lowered, and zero tariffs on aircraft and select agriculture. EU committed to $600 billion in US investment and $750 billion in US energy purchases.
• Other deals: Japan (tariffs reduced to 15% with investment pledges), Indonesia (finalised; U.S. exports tariff-free), Vietnam (announced; 20% tariffs, pending ratification), and the Philippines (preliminary; 19% tariffs with cooperation provisions).

Tariffs paused or delayed

• The rollout of reciprocal, country-specific tariffs to replace the 10% baseline remains delayed while negotiations continue.
• Electronics (smartphones, computers, semiconductors, etc.) remain exempt.

Tariffs under investigation

• Section 232 Investigations continue into pharmaceuticals (with the UK expected to receive preferential treatment if new tariffs are imposed), as well as copper, timber, semiconductors and equipment, critical minerals, medium- and heavy-duty trucks and parts, and commercial aircraft.

Networking Reception with the British-American Parliamentary Group 

21 July 2025

Overview: At the end of July, BAB hosted a special reception honouring the visit of the UK’s British-American Parliamentary Group to Washington, D.C, in partnership with BABA Washington D.C. The event convened members of the UK Houses of Parliament with members of the U.S. House of Representatives British-American Parliamentary Group, alongside senior representatives from government, industry, think tanks, and business associations to celebrate the enduring US-UK partnership. The evening provided a unique opportunity to strengthen transatlantic dialogue and foster connections across the diplomatic and commercial communities.

2025/26 Trade Guide Release

26 June 2025

Overview: BritishAmerican Business (BAB) is pleased to announce the release of the 2025/26 edition of Finding Your Way: The Trade and Investment Guide to the UK, a vital resource for US companies exploring opportunities to export to or expand their business into the UK.

This updated edition offers US companies clear, practical guidance on every step of their journey into the UK market. It provides advice on all the issues that businesses must consider when expanding, from logistics and legal to finance, funding and taxation to talent acquisition and immigration.

The 2025/26 edition highlights why the UK remains a top destination for US businesses. The Guide compliments the ambitions set out in the UK Government’s Modern Industrial Strategy, showcasing the country’s strengths in innovation, high-growth industries, and the opportunities across its diverse regional economies.

Finding Your Way profiles the services and support available from both the UK and US governments, leading industry associations, and trusted networks.

Learn more: You can read our full guide 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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