UK‑US deal leaves tariff exemptions open
Britain’s House of Commons Library says a recent UK‑US agreement allows the possibility of exemptions for semiconductors and some other goods from future U.S. tariffs, while most other UK goods would face a 10% U.S. tariff. The briefing also notes legal uncertainty after a February 20 Supreme Court decision that has affected the footing of several U.S. tariffs. (commonslibrary.parliament.uk)
A new United Kingdom-United States trade deal leaves the door open for future United States tariff exemptions on semiconductors, while most other British goods still face a 10% levy. (commonslibrary.parliament.uk) Britain’s House of Commons Library said the agreement was reached on May 8, 2025 and has been only partly implemented. Its March 2026 briefing said the United States applies the 10% tariff to most United Kingdom goods imported into the country. (commonslibrary.parliament.uk) The same briefing said the deal could remove the current 25% United States tariff on British steel, aluminium and related goods if the United Kingdom meets United States supply-chain security requirements. It also said Britain can export up to 100,000 passenger vehicles to the United States at a 10% tariff and that pharmaceuticals can enter tariff-free. (commonslibrary.parliament.uk) The arrangement is not a full free trade agreement. The House of Commons Library said full United Kingdom-United States trade talks that began in 2020 stalled, and both governments shifted to narrower sector-by-sector deals after the 2023 Atlantic Declaration. (commonslibrary.parliament.uk) That narrower structure helps explain why semiconductors are still in play. The United Kingdom government’s published Economic Prosperity Deal says the two sides agreed general terms on May 8, 2025 and would keep negotiating to formalise the proposals. (gov.uk) A second layer of uncertainty comes from United States law. The House of Commons Library said a Supreme Court ruling on February 20, 2026 changed the legal footing of several tariffs, including some tied to the International Emergency Economic Powers Act, a law presidents have used to respond to foreign threats. (commonslibrary.parliament.uk) In Learning Resources, Inc. v. Trump, the Supreme Court said the case turned on whether that law authorizes the president to impose tariffs. The United States Trade Representative said after the ruling that it affected only the administration’s “Reciprocal and Fentanyl Tariffs” and that tariffs imposed under other statutes would remain in place. (supremecourt.gov) (ustr.gov) The White House’s July 17, 2025 fact sheet on implementing the deal showed how selective the carve-outs already are. It said certain aerospace products would return to normal tariff rates, while automotive parts used in United Kingdom vehicles would face a total tariff rate of 10%. (whitehouse.gov) For British exporters, the result is a deal with headline relief in steel, cars and medicines but no blanket shield from future United States tariffs. For semiconductors, the key word in Parliament’s briefing is still “possibility,” not guarantee. (commonslibrary.parliament.uk)
