The British government has provided details on the US–UK Supply Chain Security Agreement.
In 2025, both nations agreed on supply chain security requirements that must be met for steel, aluminum, and pharmaceutical products under their Trade Agreement.
Supply chain security
According to the British government, these discussions are limited to products intended for export to the United States. They do not, therefore, apply to goods for domestic consumption in the United Kingdom. Nor do they extend to exports to third countries.
This position was stated during a meeting of the World Trade Organization (WTO). The response was given in response to a specific question from the Chinese government.
In the case of manufactured goods, some exports from the United Kingdom to the United States are subject to lower tariffs under the General Terms. This is the case for automobiles, which will face a reduced tariff of 10% within an annual quota of 100,000 units.
Similarly, steel and aluminum, as well as certain derivative products, are subject to a quota with Most-Favored-Nation (MFN) tariffs. This avoids the 25% tariff that the United States currently applies to imports from the United Kingdom.
Section 232
This benefit is conditional on compliance with US supply chain security requirements. It applies specifically to steel and aluminum products destined for export to the United States. It also takes into account the nature of ownership of the production facilities involved.
At the same time, the United Kingdom and the United States are seeking to advance a preferential tariff treatment for pharmaceutical products. However, this objective depends on the conclusions of a U.S. investigation under Section 232 related to national security. It is also subject to compliance with supply chain security requirements.
Authorities note that both economies are negotiating a broader economic agreement. The plan includes additional tariff reductions, the promotion of digital trade, greater openness in services, and the optimization of supply chains.