UK Tariff Deal Special Tariff Provisions Begin June 30
Special tariff treatment for U.K. automobiles, auto parts and goods falling under the Civil Aircraft Agreement will begin June 30, according to a notice released by the Commerce Department June 27.
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Beginning on June 30, automobiles up to a quantity of 65,205 in 2025 and 100,000 in subsequent years will be eligible for a 7.5% tariff rate quota under new subheading 9903.94.31, rather than paying 25% Section 232 tariffs on autos, steel and aluminum. Combined with the 2.5% most favored nation tariff, that adds up to a total tariff of 10%.
Auto parts that are to be used in the UK-assembled vehicles will also avoid the 25% auto tariffs, the notice said.
The TRQ will be imposed on a quarterly basis with a maximum quantity of 25,000 per quarter, though quantities may carry over into subsequent quarters.
Likewise, on June 30, U.K. auto parts will be eligible to enter at a 10% tariff rate under new subheading 9903.94.32, and goods under the Civil Aircraft Agreement, as listed in the notice, will enter free of reciprocal and Section 232 tariffs under new subheading 9903.96.01. CBP issued guidance June 27 on submitting entries related to imports of automobile parts and aircraft products from the U.K. under those headings.
Meanwhile, in a separate June 27 cargo systems message, CBP provided a quota bulletin related to U.K. automobile tariff rates. The 2025 quantity threshold for June 30 through Dec. 31, based on the U.S.-U.K. Economic Prosperity Deal operative date of May 8, 2025, is 65,205 automobiles, CBP said.
For 2026, and annually thereafter, the tariff rate quota will be subject to an annual aggregate limitation of 100,000 automobiles and will be administered quarterly according to the annex published in the Federal Register, CBP said.