Last month brought positive news from the White House and No. 10, with the announcement of a potential trade deal between the UK and the USA. Its aim is to ensure access to and reciprocal benefits in relation to each respective market. However, it is important to note that it is only the bare bones of a narrow agreement, and there will be months of negotiations and legal paperwork to follow, with every possibility that further key changes could be made. For now, some of the key headlines include:

• Cars: Cars are the UK’s biggest export to the US, worth around £9bn to the UK economy. Trump had placed import taxes of 25% on cars and car parts coming into the US, on top of an existing 2.5%. This has now been cut to 10% for a maximum of 100,000 UK cars, which matches the number of cars the UK exported last year. Anything above that will then be hit by a 27% import tax.
  
• Steel and Aluminium: A 25% tariff on steel and aluminium imports into the US has been scrapped. This includes products made of steel and aluminium, such as gym equipment, furniture, and machinery. In addition, Rolls-Royce engines and plane parts can be exported from the UK to the US tariff-free.
  
• Pharmaceuticals: Pharmaceuticals are the second biggest export from the UK to the USA, with sales worth around £6.6bn last year and reciprocal sales from the USA to the UK around £4bn. However, the position around pharmaceuticals is still unknown, with the UK saying work would continue on this and the remaining reciprocal tariffs. The US said both countries would “promptly negotiate significantly preferential treatment outcomes on pharmaceuticals”. It is worth noting that most countries impose few or no tariffs on finished drugs as part of an agreement aimed at keeping medicines affordable.
  
• Food Standards: Food standards are to remain the same. The UK has scrapped the 20% tariff on importing US beef, but crucially, there will be no weakening of UK food standards on imports as part of this deal. Many American farmers use growth hormones as a standard part of their beef production, something that was banned in the UK and the European Union in the 1980s. This is an area where the UK has chosen alignment with the EU – and the forthcoming “Brexit reset” with the EU – over the US.
  

Beyond the UK-US deal, other global trade agreements continue to shape economic landscapes. The UK-EU trade framework has undergone revisions to ease post-Brexit trade barriers, particularly in the agricultural sector. Meanwhile, the USA has been renegotiating trade terms with various partners, including China and Canada, to address tariff disputes and market access concerns.

While international trade agreements open new doors for businesses, they also necessitate careful legal and strategic planning. Local businesses must take proactive steps to update contracts, ensure compliance, and optimise their operations to align with evolving trade policies. By doing so, organisations can seize opportunities while maintaining stability in cross-border relationships.