May 2025

US-UK trade agreement is a positive signal but the real work is still to come.

Duncan Edwards OBE, Chief Executive Officer, BritishAmerican Business (London/New York chapter of the BAB network)

May 13, 2025

The announcement on May 8th that the UK and US governments had reached an agreement on trade issues was met with widespread relief from the UK exporting community which had been hit with new, significantly higher, tariffs on April 2nd.

After a few days of reflection and further investigation, including reading the text of the agreement itself, I think it is still fair to characterize this agreement in the positive light that we first reported it to our members.

The agreement commits both countries to the negotiation of a broader Economic Prosperity Deal covering digital and physical trade as well as supply chain issues, economic security and investment screening. More concretely, it also, in the more immediate term, promises a lowering of the current rate of duty of 27.5% on car and car part exports to the USA to 10% for up to 100,000 units and a reduction of tariffs on steel and aluminum to zero. There is also some enhanced market access for beef (both ways) and for ethanol exports from the US to the UK. Important to note, these changes are not coming into immediate effect as there are various internal processes to complete, so the car exporters can’t breathe easy just yet.

On the assumption that these headline changes do go through in the next days or weeks, then the UK can rightly claim a win. It is still the case that car exporters will be facing a higher tariff (10% up from 2.5%) than they were 5 weeks ago but the real existential damage of a 25% tariff has been averted; same goes for steel. Executives representing other categories may be struggling to see the upside as the 10% baseline tariff that was imposed on April 2nd remains in force on goods that had previously paid almost nothing.

The other, more symbolic, win is that the UK deal, however thin, was the first of the new deals agreed by the White House and was accompanied by the warmest of words for the UK and its Prime Minister from the President.

So far, so good. But the real upside of this announcement will lie in the future negotiation of the bigger Economic Prosperity Deal itself, the principles of which were outlined in fairly broad strokes in the terms sheet last week which you can read here. It is only through this wider agreement that the UK can get back to the status quo ante on tariffs and reach agreement on the closer economic partnership and digital trade future that both sides (and BAB) say they want.

Read more here

View the General terms for the US and the UK Economic Prosperity Deal here.

Whether you're expanding your network, seeking new opportunities, or simply looking to engage with the British-American business community, this event is the perfect setting.

Tias's Waterfront.

200 Atlantic Avenue, Boston, MA 02110

2025 America's Cup Networking Sailing Event

June 18, 2025, Newport, RI

Join 30+ guests competing (gently) on genuine 70ft 1960's Americas Cup winning yachts in Newport, Rhode Island on Wednesday June 18th, with America's Cup Charters.

Meet business contacts on board, grab a drink and network afterwards at the shore party... Many thanks to corporate partner Hollywood Agency for joining the party again in 2025 - there are a few more corporate packages with branding and social benefits, and individual tickets are available too (on a 'first come first served' basis as we've sold out every year).

Save the date! US-UK Polo Match

August 30, 2025, 5:00 pm

More details to follow shortly.

Team USA will once again take on Team England in one of the most iconic matchups of the Newport International Polo Series.

This historic rivalry goes beyond just a game—it’s a nod to the rich history of polo, from its origins in ancient Persia to England’s role in modernizing the sport and spreading it throughout the world.

The annual showdown between USA and England echoes a shared past, where polo—along with much else—was passed from one nation to another.

After last year’s incredible last-minute, four-goal comeback win over America, England returns determined to preserve their honour, knowing the fierce competition that awaits them on American soil. With both teams boasting first-class talent, the match promises an exhilarating contest of skill, strategy, and sportsmanship.

As the two nations meet, this encounter becomes not only a test of athleticism, but an international affair awash with history and national pride that celebrates polo’s journey across continents.

Interested in sponsoring, getting more involved? Please reach out to Richard Hawke, Event Organiser and BABCNE Membership Chair: rich@hawke.tv

Forced Labor Update

Tariffs forum April 24, 2025

Our thanks to Hult Int'l School

of Business for hosting us.

The BABN engages with the US and UK governments on a broad range of policy issues impacting the flow of goods and services between the UK and North America. For more details visit: https://babn.org/about-us/ The BABCNE is a founding member.

You may be interested in viewing the events of the twenty chapters of the network: https://babn.org/events/

Trump's 2025 Tariffs on UK-US Trade: What Businesses Need to Do Right Now

by John M. Scannapieco, Partner, Womble Bond Dickinson (US) LLP, a BAB network member, and Honorary UK Consul in TN.

In early April 2025, President Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose a 10% baseline tariff on all imports, including those originating from the United Kingdom. This unilateral move stunned many in the business community, especially given the traditionally strong alliance between our nations. Particularly hard-hit sectors included steel and aluminum, where a 25% tariff came into effect on March 12, 2025, and the automobile sector, including imported passenger cars and light trucks and auto parts, where a 25% tariff was imposed on April 3, 2025, and May 3, 2025, respectively, under Section 232 of the Trade Expansion Act. 

The US-UK Framework Trade Agreement

On May 8, 2025, the US and the UK announced that the two countries had entered into a framework trade agreement that establishes what the parties claim will be a new foundation for economic cooperation, focusing on tariff reductions and greater market access in certain sectors. For the US, this means lower tariffs and greater market access for beef, ethanol, pharmaceuticals and pharmaceutical active ingredients. For the UK, this means greater market access for UK beef and a reduced tariff quota rate for 100,000 UK auto imports, as well as for UK steel and aluminum imports. The 10% universal tariff on all other UK goods imported to the US will remain. It is now up to the two countries to negotiate the details before businesses on either side of the Atlantic will see any benefits.

Impact of Tariffs on UK and US GDP

The economic consequences of the tariffs imposed prior to April 10, 2025, are potentially severe and widespread. As reported by The Times, UK GDP growth forecasts have been revised downward to a mere 0.8% for 2025 and 0.9% for 2026, due largely to a contraction in exports and a chilling effect on business investment. Business confidence has similarly eroded; a recent survey conducted by The Guardian revealed that approximately 75% of Britons now anticipate worsening economic conditions in the near term. Analysis by the Center for Strategic & International Studies (CSIS) and the University of California, Santa Barbara (UCSB), finds that the proposed April 2 and earlier tariffs would lower U.S. GDP by 0.8 percent, while raising U.S. prices by 7.1 percent and U.S. wages by 6.3 percent. 

The impact of the tariffs imposed in May on UK and US GDP has yet to be estimated. Because the US-UK framework trade agreement is essentially an agreement to agree, we will not know the impact the potential trade agreement will have on either country until the parties finalize its terms.  

Read the whole article here

Look forward, not back’: UK keen for closer trade ties with EU, says Starmer

PM says he has ambitious plans for partnership and argues Britons have moved on from Brexit

Guardian, Pippa Crerar in Oslo and Lisa O'Carroll

May 9, 2025

The UK has “ambitious” plans to secure a closer trading partnership with the EU, Keir Starmer has said, as he argued the British public had moved on from Brexit.

Before a UK-EU summit, the prime minister urged people to “look forward, not back” as the country embarked on a new era of its relationship with the bloc.

At the end of a week in which Starmer has struck trade deals with the US and India, he indicated the UK would align with the EU on food standards, work more closely on law enforcement and that he would support a controlled youth mobility scheme.

Read more here

The Port of Boston integral to New England supply chain

AJOT, George Lauriat, Editor, April 21, 2025

On March 24th, 2025, the 16,196 TEU containership MSC Verona made its inaugural visit on a typically cold and drizzling day nestling into the berth at the Port of Boston’s Conley Terminal, operated by Massport.

This wasn’t an ordinary call. The ship call represented a seminal moment for the Port. It was as Massport’s Port Director Lauren Gleason recounts, “A testament to the federal, state and local elected delegation who advocated for the support. It’s a testament to the leadership that came before me. It’s a testament to the industry, the shippers, and all of the port partners and stakeholders that advocated, for decades, to modernize and revitalize Conley Container Terminal.”

Read more here

Your BABCNE Membership Today

We connect. We inform. We support.

Now is the ideal time to renew your membership—or join for the first time—and take full advantage of what’s ahead in 2025. JOIN US!

Video courtesy of Hawke Commercial Filmmaking

Save the date!

The 37th Annual Christmas luncheon will take place on December 5, 2025 at the Harvard Club of Boston. Interested in marketing your company to the unique audience of US/UK executives? Contact us: info@babcne.org

Celebrating V-Day

King Charles and Queen Camilla were joined by other members of the Royal Family in various events to mark the end of World War II in Europe.

From a spectacular military parade, a flypast over Buckingham Palace, and moments of thanksgiving and remembrance, the nation came together to ensure that the stories and legacy of those who served will never be forgotten.

Watch some highlights from the 80th VE Day celebrations here.

Historical prespective - series of events leading up to V-Day:

https://www.defense.gov/Multimedia/Experience/VE-Day/#timeline



New route! Boston-Edinburgh

BABCNE member, Jet Blue, is happy to annouce a new daily, seasonal service between Boston (BOS) and Edinburgh (EDI), beginning May 22, 2025 (Eastbound) and May 23, 2025 (Westbound). The service will run through October 24, 2025. 

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