New UK/US Trade Deal – What Does it Mean for Immigration?

“Breakthrough” Agreement Between UK and US

While not strictly a trade deal, the new agreement between the UK and the US is being called a “breakthrough” by Prime Minister Kier Starmer.

It is the first agreement made following Donald Trump’s high-profile introduction of tariffs on non-US goods and it could signal an unique advantage for many businesses.

The UK government is hoping it will save jobs in a number of key British industries, while the US has always seen the UK as a special ally – purchasing around £200 billion in British exports annually.

What is Covered by the New Transatlantic Deal?

Trump’s 10 per cent tariff he introduced to imports from all countries will still apply to the majority of goods from the UK. However, some industries will benefit under this new deal.

Automotive

Prior to the latest agreement, there was import taxes of 25 per cent on all cars and car parts entering the US. This was in addition to the existing 2.5 per cent tariff that was already in place before Trump took office.

This has now been reduced to ten per cent up to a maximum of 100,000 cars – which is around equal to the number of cars exported to the US from the UK in 2024. However, any cars exported above this quota will still face a 27.5 per cent supplement.

The lowering of the automotive tariff has largely been praised by the British car industry, who export around £9 billion worth of goods each year to the US.

Steel and Aluminium Tariffs

Under the terms of the new deal, the recently introduced 25 per cent tariff on steel and aluminium imports from the UK to the US has now been removed.

But uncertainty remains as according to the agreement terms:  “The US will promptly construct a quota at most favoured nation (MFN) rates for UK steel and aluminium and certain derivative steel and aluminium products.”

Last month saw the British government forced to step in to save the ailing British Steel so any steps to make the industry more appealing on a global stage will be welcomed.

Agriculture

In a move to boost opportunities within the agriculture sector, the deal has seen the removal of the 20 per cent tariff and a 1,000 metric tonne quota on US beef exports. Under the new terms, the tariff is zero, with a higher quota of 13,000 tonnes.

The White House believe this could create around $5 billion in new trade for US-based farmers and producers as they find new opportunities in the UK.

Negotiations also covered food standards, but it was confirmed that the UK was going to continue to not allow hormone-injected beef to be sold in British supermarkets. This was seen as a major win by the British government following significant pressure from the US to remove such restrictions.

The Benefits of the New Deal

With the UK being one of the first countries to agree a new deal with the US it is being seen as a positive start to hopefully a strong economic partnership between the two nations.

Reduced tariffs and more open trading could encourage more businesses to expand their current operations into the UK and US, leading to more job opportunities in both countries.

UK Business and Trade Secretary Jonathan Reynolds, explained: “Businesses across the country will be glad to see our approach working, but this is only the beginning.

“We look forward to strengthening our trading relationship with the US through a wider economic deal, which will help us to deliver on our Plan for Change to provide economic stability and make this country fit for the future.”

So What Does This Mean for Immigration?

It is yet unclear how the new trading partnership between the two countries will develop, especially as a number of industries including pharmaceuticals and film making were not included. We could see further deals being brokered between the UK and US over the coming months that may present further areas of new business.

Such increased opportunities could lead to job creation, especially for those with skills in key sectors. This could mean a rise in applications for both UK and US visas as businesses seek to relocate staff to be at the forefront of creating new market channels.

Better interaction between the two countries can also mean firms should consider how mobile their workforce is currently. Being able to react quickly to new markets or opportunities can offer a competitive edge over rivals. Having the right immigration permissions in place is a distinct advantage when it comes to being able to secure new business efficiently.

For UK-based employers wanting to sponsor workers from the US, they should ensure they have a Sponsor Licence already in place. This is compulsory for hiring via the Skilled Worker or Global Mobility routes including the Senior or Specialist Worker visa.

Equally, multinational companies looking to move UK staff to work in the US should ensure they are aware of the requirements of the L1 Visa: Intracompany Transferee pathway if they want to have someone with UK knowledge in their US branch – which could be an strong advantage when negotiating export deals.

Beyond the corporate opportunities created by the trade agreement, a stronger relationship between UK and the US could open other immigration routes with the most optimistic take suggesting even the creation of a US-UK free movement deal in the future.

How Can IAS Help?

If you are an employer considering recruiting new staff in the UK or US, or planning to relocate current employees overseas, then the team at IAS can help you secure the right visa or work permit.

We have experience in working with a variety of businesses and organizations in applying for visas, checking documentation and advising on legal compliance. IAS also offer a comprehensive range of relocation services to help ensure the move overseas is as stress-free as possible.

Contact IAS today for personalised advice on +1 844 290 6312 or use our live chat to find out more about how we can help your business succeed internationally.