Committee publication · Correspondence · 9 June 2026
Letter from the Minister of State for Trade relating to the UK-US Economic Prosperity Deal and recent US tariff reductions, 26 May 2026
From: Business and Trade Committee
Inquiry: UK trade with the US
Summary
The Minister of State for Trade updates the Business and Trade Committee on two major outcomes from the UK-US Economic Prosperity Deal: the removal of US tariffs on UK whisky (now zero-rated, worth £1 billion annually to the industry) and the retention of preferential tariff rates on UK steel and aluminium (25% core rate, 15% for derivatives) following US changes to Section 232 tariffs in April 2026.
Key findings
- US tariffs on UK whisky removed entirely as of 30 April 2026, reducing from 10% preferential rate under the EPD to zero, benefiting an industry exporting £1 billion annually to the US
- UK secured preferential 25% tariff rate on core steel and aluminium, and 15% on derivatives—the only country to retain such rates after US Section 232 changes on 2 April 2026
- Tata Steel UK granted exemption to use steel from Netherlands operations until 1 January 2028, allowing continued access to 15% derivative tariff despite new 'melted and poured in UK' criteria
- US expanded scope of Section 232 tariffs to apply to full product value rather than metal content alone; non-preferential rates remain 50% for core steel and aluminium
- Government commits to ongoing negotiations with US for further tariff reductions and engagement with Northern Ireland supply chain impacts under Windsor Framework
Tone
FactualTopics
trade-agreementstariffsuk-us-relationsmanufacturingexports
Key actors
Sir Chris Bryant MP, Liam Byrne MP, President Trump, Ambassador Greer, Tata Steel UK, Department for Business and Trade
Notable line
“The tariff rate will now be reduced to zero, providing full tariff-free access.”
Key Quotes
“This is positive news for the UK whisky industry, which exports around £1 billion of whisky to the US annually and supports thousands of jobs across the UK.”
“… the UK was the only country to secure a preferential rate on steel and aluminium.”
“The UK negotiated an amendment to the criteria, ensuring that Tata Steel UK, using steel melted and poured from their operations in the Netherlands, can continue to export to the US at the UK's preferential rate until 1 January”
Source · parliament.uk record ↗