Source · Select Committees · Business and Trade Committee
Recommendation 5
5
Accepted
Maximise pressure on the US to agree final terms for an Economic Prosperity Deal.
Recommendation
Going forward, we recommend the Government now maximises pressure on the US, beginning during and continuing after the President’s State Visit, to agree final terms for a lasting, Economic Prosperity Deal that de-risks the threat of future sectoral tariffs, maximise predictability and that where the UK has secured terms which are second best to the EU, we aim to improve them. (Recommendation, Paragraph 50)
Government Response Summary
The government highlights existing successes from the President's State Visit, including the Technology Prosperity Deal and preferential tariff rates for steel, aluminium, lumber, and cars. It states it is continuing talks on a wider UK-US Economic Deal and will work closely to further reduce tariffs and expand the EPD over time.
Government Response
Accepted
HM Government
Accepted
President Trump’s State Visit was a valuable opportunity to further strengthen our existing economic relationship with the US. During the visit, the UK and US announced the Technology Prosperity Deal that builds on the EPD. The first ever UK-US tech agreement is focused on developing the fastest growing technologies like AI, quantum, and nuclear. The deal will bring new healthcare breakthroughs, clean home-grown energy, and more investment into local communities and businesses in Britain and the US. During the State Visit, the US confirmed that the UK will not face an increase in steel and aluminium tariffs to 50% and will remain the only country in the world to benefit from a preferential 25% rate on steel, aluminium and derivative exports to the US, thanks to the EPD. This provides the certainty that UK industry has long been calling for. Also as a result of the EPD, the UK has received preferential treatment for lumber products, with the lowest tariff rate of any country in the world at 10%. Other countries face tariffs of up to 50%. This is in addition to the tariff rate of 10% secured for UK cars under the General Terms – the lowest tariff for any country in the world. We are continuing talks on a wider UK-US Economic Deal which will look at addressing specific tariff and non-tariff barriers, increasing digital and services trade, and unlocking new commercial opportunities that benefit both nations. The US and UK have agreed that the EPD can be further expanded over time to cover additional areas, ensuring that the agreement remains fair, reciprocal, and mutually beneficial. We continue to work closely with our US counterparts to reduce tariffs further and secure the best possible outcomes for UK manufacturers.