With global trade shifting fast in 2025, both the UK a few months ago and the EU only yesterday, secured new trade deals agreements with the United States. And while the headlines suggest progress, the fine print tells a different story—especially if your business is exporting to or importing from the U.S.
In this short blog, we break down the key differences between the new UK–U.S. and EU–U.S. trade deals, and what they mean for your supply chain.
The UK–U.S. Deal: Targeted, With Real Gains
The Economic Prosperity Deal, announced earlier this year, is not a full-blown free trade agreement—but it does offer meaningful relief in key sectors.
Highlights:
- Cars: UK-made vehicles (up to 100,000 per year) can enter the U.S. at a reduced 10% tariff, down from the typical 25%+
- Auto Parts: UK-origin parts used in UK-made vehicles qualify for the same 10% rate
- Steel & Aluminium: Still subject to 25% tariffs—but exemptions available for goods meeting U.S. origin and security rules
- Agriculture: UK agreed to import U.S. beef and ethanol duty-free, in exchange for tariff cuts on vehicle exports
- Aerospace Components: Exempt from tariffs under existing WTO agreements
For UK exporters, this deal creates real savings—if you know how to qualify and document your goods properly.
The EU–U.S. Deal: Broad, But Less Beneficial
The EU’s trade agreement with the U.S. is framed as a “strategic cooperation pact”—more about politics than precision.
Key Terms:
- 15% blanket tariff on most EU goods going to the U.S. (cars, semiconductors, pharma, etc.)
- Steel & Aluminium: Tariffs remain at 50%, with no relief confirmed
- Strategic Sectors: Some aircraft and chemical products may be exempt
- Investment Promises: EU pledges to buy $750B in U.S. energy and invest $600B in the U.S. economy—though details remain vague
For most EU exporters, this deal avoids a tariff war—but offers limited cost savings.
Side-by-Side Comparison
| Trade Feature | UK–U.S. Deal | EU–U.S. Deal |
|---|---|---|
| Cars | 10% tariff (100k limit) | 15% tariff |
| Auto Parts | 10% (UK-origin only) | 15% |
| Steel & Aluminium | 25% (quota-based relief) | 50% |
| Beef/Ethanol | UK opens access | No agreement |
| Aerospace | Tariff-free (WTO-aligned) | Tariff-free (case-by-case) |
| Energy & Investment | Not included | $1.35T in pledges (non-binding) |
What Does It Mean for Your Business & trade?
If you’re exporting from the UK to the U.S., you may now have a price advantage over EU competitors with this trade deal — especially in automotive, aerospace, and metals. But quotas and compliance requirements mean you need to get your paperwork right. Once we have reached quota limits tariffs skyrocket, which underlines the U.S. strict protectionist ambitions.
If you’re exporting from the EU, the flat 15% tariff of the EU U.S. trade deal could squeeze your margins—especially in high-value sectors like pharma, precision engineering, and electronics. Steel and aluminium exports remain heavily penalised. Whether you absorb these tariffs cost to encourage your buyers is a big question currently being tackled in every board room. Because as we saw with Brexit, if the buyer doesn’t want to pay over the odds for a product in the form of extra tariffs, then they will look elsewhere.
And this sits at the crux of trading with the U.S. right now. Whilst U.S. consumers pay the tariffs, if there is choice it may be the exporter who suffers. There is also the small matter of Mr Donald Trump and whether if he feels like it, that he changes the rules. As we have seen many times since he’s taken office on a bad day things can, and most probably will, change. So a flexible approach to whatever seems fixed right now is best.
How Jordon Freight Can Help
At Jordon Freight, we’ve been navigating complex international trade routes for 26 years. Now mroe than ever we are seeing very challenging conditions for businesses and we make a point of keeping on top of changes and making decisions accordingly. Whether you’re shipping to Germany, the U.S., or beyond, our customs and freight teams help ensure:
- Correct commodity codes and origin declarations
- Access to tariff reductions (where available)
- Seamless transport and border clearance
- Full documentation support under both UK and EU regulations
Final Thought
The U.S. is dominating negotiations around the wrold right now and the EU trade deal seems particularly odd. Odd in that this trade deal doesn’t seem to offer the EU much in return. Other than tariffs the EU trade deal has a whole raft of spending commitments and subsidies that the EU has to keep. It’s difficult to understand the full extent of any recipricol benefit as the information is still being digested, with rumours of better energy amongst some of the trade deal. One can only hope there is some mutual benefit between the EU and the U.S.
In conclusion these EU UK U.S. trade deals reflect a dramatically shifting global landscape where compliance, flexibility, and forward planning are key. Understanding that the U.S. is no longer a stable trading partner is vital to protecting your business. It’s also possible that differences between the UK and EU agreements with the U.S. could help your business stay competitive, reduce costs, and move with confidence.
Of course it’s more likely whoever you are, trading with the U.S. now brings regular impact to your business, so we’ll keep posting bulletins on EU UK US trade deal as more is revealed.
Yours,
The Jordon Team