As many will be aware, one of the supposed benefits of Brexit is that the UK can now negotiate its own Trade Deals. In theory, this allows UK businesses to trade with suppliers and customers in countries where a Trade Deal exists, potentially benefiting from lower import charges.

The UK government has recently promoted several high-profile Trade Deals. Below is a summary of these agreements, along with key considerations when trading with countries where a Trade Deal is in place.

It is important to be aware of such agreements when assessing customs duties. These deals are intended to promote economic growth and strengthen international ties, often increasing trade between the countries involved. However, businesses that import or export goods must understand which Trade Deals apply, as they may affect both the amount of duty payable and the documentation required at import. It is especially important to note that benefiting from reduced duties involves more than simply shipping goods from a country with which the UK has a Trade Deal.

USA Trade Deal

Announced in May 2025, the United Kingdom and United States agreed a limited trade deal that removes many of the additional tariffs introduced by the Trump Administration earlier that year. While not a comprehensive agreement, and with further details expected, a number of sector-specific tariff reductions have been confirmed:

• The 25% US tariff on UK steel and aluminium products has been reduced to a zero rate.
• A reciprocal arrangement has been agreed for certain agricultural products, particularly beef. Under the deal, 13,000 tonnes of UK beef can be imported into the US under a tariff-free quota. In return, the UK has lifted tariffs on US beef imports. The UK government has stated that this will not compromise domestic food standards.
• There has been a notable reduction in tariffs on UK car exports to the US. For up to 100,000 cars annually - covering most UK exports in 2024 - the tariff will drop from 27.5% to 10%. While this remains higher than the 2.2% rate in place at the start of 2025, it is significantly lower than the rates imposed earlier in the year.

EU

In May 2025, the UK government agreed a 're-set' deal with the EU, covering several areas including fishing rights and defence and security co-operation. On trade, while no immediate changes have been confirmed, it is acknowledged that UK exports have declined as a direct result of Brexit. Trade is therefore expected to remain an active area of engagement. However, the scope for change is limited by the UK’s commitment to the existing EU-UK Trade and Cooperation Agreement (TCA), which restricts access to EU markets.

No formal announcements have been made concerning revisions to UK–EU trade arrangements at this stage. That said, businesses trading with EU countries should monitor developments closely to stay compliant and avoid supply chain disruption. It is also recommended that businesses continue to review their duty planning and take steps to optimise their duty position.

A key reminder: Regardless of any future changes, the origin of goods traded between the UK and EU remains under close scrutiny. Both HMRC and EU customs authorities are taking an increasingly strict approach where the required origin documentation is not available. If origin cannot be evidenced properly, the consequences can be costly.

Do not leave this to chance. Make sure you understand which documents are required and retain them for audit purposes. For advice on origin requirements and trade compliance, contact The VAT People on 0161 826 8926.

India

On 6 May 2025, the United Kingdom and India announced a Free Trade Agreement (FTA) following three years of negotiation. A central aspect of the deal is the reduction of tariffs on UK goods exported to India, including whisky, gin, and automotive products. In many cases, these tariffs will fall sharply in the short term, with further reductions phased in over the next decade. By the end of this period, 85% of UK tariff lines will be tariff-free.

Similarly, the agreement provides for a staged reduction in tariffs on goods of Indian origin imported into the UK. Over the life of the agreement, tariffs will be removed entirely on 99% of Indian goods. This includes items such as clothing, footwear, and food products.

Trade agreements such as this are a key consideration for businesses involved in international shipping. They determine the duty rates applied to goods and set the conditions for accessing preferential rates, including documentary requirements such as proof of origin.

Businesses trading internationally should keep up to date with new and evolving FTAs to optimise their duty position and meet all evidential requirements. This is often a complex area, and expert advice can help avoid errors and maximise savings.

If you have any questions about the UK–India FTA or other international trade matters, please contact us on 0161 826 8926 or email jack.ray-atkins@thecustomspeople.com.