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Some Tariff Relief in U.S. Trade Deals with UK and China

| General Government Relations

The United States agreed to two major trade frameworks in recent days with the United Kingdom and China. These are the first formal pacts concluded since the Trump administration’s April 2 “Liberation Day” announcement of global tariff increases. 

U.S.-UK Trade Framework 
On May 8, the U.S.-UK deal keeps a 10% reciprocal tariff on most UK goods but introduces several key provisions, including: 
  • Tariffs on UK autos will drop from 27.5% to 10% for the first 100,000 vehicles imported annually; additional vehicles will be subject to 25% rates. 
  • Section 232 tariffs on UK steel and aluminum are eliminated entirely, replaced with a new bilateral framework to address excess global capacity and support domestic production. 
  • Expanded market access for U.S. beef, ethanol and other agricultural exports, totaling an estimated $5 billion in new U.S. exports. 
  • Streamlined customs procedures and improved access to the UK’s government procurement market for U.S. businesses. 
  • Sector-specific commitments in aerospace and pharmaceuticals, including preferential supply chain treatment for U.S. manufacturers. 
U.S.-China Trade Reset 
On May 12, following talks in Geneva, the U.S. and China announced a 90-day tariff reduction agreement – until August 12 – and a restart of structured trade consultations. Key terms include: 
  • A 115% mutual tariff reduction, resulting in a new U.S. rate of 30% on imports from China, comprising a 10% baseline and a 20% penalty tied to China's role as a source of chemical ingredients used in fentanyl (IEPPA). 
  • However, the existing Section 301 (7.5% - 25%) and Section 232 tariffs on covered products also remain in place.  
  • China will maintain a 10% baseline tariff and suspend planned countermeasures, including rare earth export restrictions. 
NMMA is reviewing updated tariff schedules and agreement language to assess potential impacts on the recreational boating industry. Members with questions or cost-impact data are encouraged to contact Clay Crabtree, Senior Director of Public Policy, at [email protected].