UK secures two new trade deals

The UK has secured trade agreements with the US and India. The UK-India Free Trade Agreement was announced on 6 May 2025.

Through this deal, India will remove or reduce tariffs on 90% of tariff lines, which will cover 92% of existing goods imports from the UK (based on 2022 trade). The deal effectively amounts to India cutting tariffs worth over £400 million to the UK economy

This trade agreement includes cutting tariffs on whiskey from 150% to 75% at entry into force, dropping to 40% after 10 years. The tariff on UK lamb drops from 33% to 0% at entry into force. High-end cars go from over 100% to 10% under a quota. Sectors such as sugar, pork, chicken and eggs are excluded from the UK’s tariff cuts.

General terms of a new trade deal between the UK and US were agreed on 8 May 2025. Prior to the agreement, US beef exports were subject to a 20% tariff within a quota of 1,000 metric tons (mt). The UK will remove the 20% tariff and create a preferential duty-free quota of 13,000mt for hormone-free US beef. In return, the United States will reallocate to the UK 13,000 mt of its existing “Other Countries” tariff rate quota (TRQ) for beef. Additionally, the UK will offer a preferential duty-free TRQ of 1.4 billion litres for U.S. ethanol.

In other areas the US will create a quota of 100,000 vehicles for UK automotive imports at a 10% tariff rate. Reacting to the US trade deal, Ulster Farmers’ Union president William Irvine said he recognised the deal with the US was not a traditional trade deal.

“But the fact remains; UK agriculture, including sensitive sectors like beef and cereals, is again being asked to shoulder the burden of securing trade wins for steel, aluminium and cars. That sets a worrying precedent,” he said.

See pages 26 and 27.