What the US-UK EPD Means for UK Logistics

The United States–United Kingdom Economic Prosperity Deal (EPD) is a new agreement announced by Starmer and Trump on 8 May 2025. It’s not a full trade deal, but a framework designed to lower tariffs and trade barriers in important sectors like automotive, steel, aerospace, and agriculture, helping to grow business between the two countries.

Some of the measures began soon after. On 16 June 2025, the U.S. put parts of the deal into action, including lower tariffs on UK vehicles and aerospace parts.

What does the EPD mean for the UK Logistics industry?

1. Smoother movement of exports

The deal reduces or removes tariffs on several UK exports such as cars, steel, aluminium, aerospace parts, and pharmaceuticals. For instance, UK car exports now face a 10% tariff instead of 27.5%, up to 100,000 vehicles a year. This makes shipping cheaper and more predictable, giving logistics companies a boost.

2. More imports to manage

The UK has also lowered tariffs on US goods such as beef and ethanol. That means more American products will be entering the UK, creating extra demand for storage, scheduling, and transport capacity across the logistics sector.

3. Opportunities in key regions

Areas like the Golden Logistics Triangle in the Midlands - a central hub for warehousing and freight - are expected to see more activity. But logistics providers will need to stay agile, as different goods fall under different quotas.

4. Staying flexible for the future

Because the EPD is a framework, not a legally binding free trade agreement, the rules may evolve. Logistics firms should stay alert to changes and be ready to adapt quickly.

In summary

The EPD promises lower costs, higher trade volumes, and fresh opportunities for UK logistics. But with quotas and shifting rules, success will depend on flexibility and careful planning.

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