The UK and US Announce Trade Agreement

On 8 May 2025, the UK Government has announced a trade agreement between the UK and the US.  This announcement has been mirrored by the White House. 

The agreement reached between the UK and the US, which is different from a full Free Trade Agreement (FTA), will mark a significant step in addressing the introduction of tariffs for UK-originating products exported to the US by President Trump's administration.  While not a blanket removal of tariffs, the agreement will introduce:

• reduction of tariffs on UK exports on cars from 27.5% to 10% on a given quota;
• removal of tariffs on UK steel (0%);
• removal of tariffs on imported ethanol from the US;
• a tariff-free quota on beef. 

It is important to note that the trade deal is does not eliminate the 10% reciprocal tariff imposed on all other goods for UK products, which means it does not change the impact expected on cosmetic products.  

CTPA welcomes the announcement as we have encouraged the UK Government to find non-retaliatory avenues for resolution.  CTPA commented : “CTPA welcomes the UK Government announcement of a trade deal with the US.  While it might not reference cosmetic and personal care products directly, we recognise the positive step it represents and the commitment to secure a future relationship that secures free trade for a number of sectors in support of UK business and consumers.” Nico Shaw Núñez, CTPA Director of Regulation