The U.S. Department of Commerce’s International Trade Administration (ITA) has published a Federal Register notice indicating that effective June 30, 2025, in consultation with U.S. Customs and Border Protection and the U.S. International Trade Commission, it has revised relevant provisions of the Harmonized Tariff Schedule of the United State (HTSUS) to conform with changes specified in an Executive Order by President Donald Trump regarding implementation of the June 16, 2025 General Terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal (the “General Terms”). The General Terms reached with the United Kingdom concern tariffs on imports of (i) automobiles and automobile parts; (ii) civil aircraft; and (iii) future relief on imports of aluminum and steel articles and their derivatives. See Thompson Hine update of June 18, 2025.
The General Terms provide, inter alia, that the United States intends to create an annual quota of 100,000 vehicles for imports of U.K. automobiles that are classified in heading 8703 of the HTSUS at a combined 10% tariff rate. Effective June 30, 2025, the covered subheadings as set forth in Annex I, Section A of the Federal Register notice, are: 8703.22.01; 8703.23.01; 8703.24.01; 8703.31.01; 8703.32.01; 8703.33.01; 8703.40.00; 8703.50.00; 8703.60.00; 8703.70.00; 8703.80.00; and 8703.90.01. Also effective June 30 is modified duty treatment for certain parts of passenger vehicles and light trucks that are products of the United Kingdom. Annex I, Section B lists numerous covered HTSUS subheadings under Chapters 40, 70, 73, 83, 84, 85, 87, 90, and 94. Annex I, Sections A and B provide additional details on the implementation and scope of the modified customs duty treatment for covered automobiles and automobile parts and should be closely reviewed.
The General Terms also provide that products of the United Kingdom that fall under the World Trade Organization (WTO) Agreement on Trade in Civil Aircraft are no longer subject to tariffs previously imposed. Effective June 30, 2025, numerous articles of civil aircraft (all aircraft other than military aircraft), their engines, parts, and components, other related parts, components, and subassemblies, and ground flight simulators and their parts and components that are products of the United Kingdom will no longer be subject to additional duties that resulted from the long-running WTO dispute between the United States and European Union on subsidies provided for large civil aircraft manufacturers. Annex I, Section 3 of the Federal Register notice sets forth numerous HTSUS subheadings that are covered by this modified customs duty treatment.
While the United States and the United Kingdom committed under the General Terms to adopt a structured, negotiated approach to addressing U.S. national security concerns regarding imports of aluminum and steel articles and their derivatives subject to tariffs under Section 232 of the Trade Expansion Act of 1962, this topic is not addressed in the June 30, 2025 Federal Register notice.