The Donald Trump UK trade deal has moved forward in parts, but the 25% tariff on U.K. steel and aluminum products remains in place. A Congressional Research Service report released on July 17 says the Trump administration now has a narrowing window to stabilize trade with the United Kingdom before Section 122 of the Trade Act of 1974 authority expires July 24.
The United States and the United Kingdom announced the Economic Prosperity Deal in May 2025, and both sides have already carried out some of its terms. The United States capped most additional tariffs on U.K. goods at 10% and removed tariffs on certain aerospace products, while the United Kingdom reduced tariffs on U.S. beef and ethanol.
Section 232 Tariffs Remain
The unresolved part is the proposed alternative arrangement for Section 232 steel and aluminum tariffs. That arrangement has not been implemented, so the 25% tariff still applies to U.K. steel and aluminum products.
The deal itself is not legally binding, and Congress had no formal consultative or approval role in negotiating or approving its terms. That leaves the current tariff structure resting on executive action and short deadlines rather than a ratified agreement.
Trump Tariff Threats
Donald Trump has already used tariff threats to pressure trade partners. In April, Donald Trump said the United States would likely impose additional tariffs if the United Kingdom retained its Digital Services Tax. On June 26, Donald Trump threatened 100% tariffs on European countries that implement digital services taxes.
The same report says the United States and the United Kingdom are deeply integrated economically. In 2025, total U.S. goods trade with the United Kingdom reached $162.2 billion, U.S. imports from the United Kingdom totaled $64.8 billion, and the United Kingdom was the United States' fourth-largest goods export market at $97.4 billion. The United Kingdom was also the United States' largest services trading partner, with $208.4 billion in total services trade, and U.S. investment in the United Kingdom totaled $1.1 trillion.
Congressional Research Service Deadline
The Congressional Research Service said the Trump administration faces a narrowing window to stabilize the trade relationship with the United Kingdom. That pressure is sharper because the report also says the United States suspended the Technology Prosperity Deal in December 2025, while nuclear technology cooperation resumed in February after the U.S. Supreme Court ruled that the International Emergency Economic Powers Act does not authorize the president to impose tariffs.
For U.K. steel and aluminum exporters, the immediate reality is simple: the promised alternative tariff arrangement has not taken effect, and the 25% tariff still governs those products. The unresolved question is whether Section 122 authority will be used before it expires July 24, or whether the tariff issue will remain unresolved after that date.
