Implementing the General Terms of The United States of America-United Kingdom Economic Prosperity Deal

6/16/2025

Executive Orders

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Action Summary

Background of the Deal: Announces the General Terms of the U.S.-United Kingdom Economic Prosperity Deal, which aims to boost U.S. exports (including beef, ethanol, and other agricultural products) and reduce non-tariff barriers, thereby enhancing national security and economic interests.
Automobiles and Automobile Parts:
- Establishes an annual tariff-rate quota of 100,000 UK-made automobiles subject to a combined 10% tariff (7.5% adjusted rate plus 2.5% most-favored-nation rate) for imports within quota.
- Automotive parts for UK vehicles are set to receive a total tariff of 10% instead of the standard 25%, provided they fall under specified HTSUS provisions.
- Effective adjustments will be published in the Federal Register within 7 days.
Aerospace Sector:
- Eliminates tariffs imposed under previous Presidential actions on UK civil aircraft products covered by WTO agreements.
- Modifications to the HTSUS are to be published within 7 days of Federal Register notice.
Steel and Aluminum Articles:
- Outlines future actions to establish tariff-rate quotas for UK-made steel and aluminum articles and their derivatives.
- Excess imports beyond the quota will continue to be subject to existing duties from Proclamations 9704 (aluminum) and 9705 (steel).
- Decisions will be based on the implementation of the General Terms and national security considerations.
General Provisions:
- Clarifies that the order does not interfere with the authority of executive agencies or the functions of the Office of Management and Budget.
- Specifies that the order is implemented per applicable law, subject to appropriations, and does not create enforceable rights.
- Publication costs are assigned to the Department of Commerce.

Risks & Considerations

The implementation of the United States-United Kingdom Economic Prosperity Deal could lead to increased competition for American industries, including automotive and aerospace sectors, which may impact domestic manufacturers and suppliers.
The reduction of non-tariff barriers and the establishment of tariff-rate quotas for UK imports could affect the pricing and availability of certain goods, potentially impacting Vanderbilt’s procurement strategies and costs for imported materials.
The focus on strengthening supply chains for steel, aluminum, and aerospace products may require Vanderbilt to reassess its partnerships and collaborations with industries affected by these changes, particularly if they rely on imports from the UK.
Changes in trade policies and tariffs could influence the economic environment in which Vanderbilt operates, potentially affecting funding opportunities, research collaborations, and the university’s overall financial health.
Vanderbilt may need to consider the implications of preferential treatment outcomes on pharmaceuticals, as this could impact research and development activities, particularly in the medical and health sciences fields.

Impacted Programs

Vanderbilt’s School of Engineering may need to adapt its research and development focus to align with changes in the aerospace and automotive industries, potentially exploring new areas of innovation and collaboration.
The Owen Graduate School of Management could see increased demand for expertise in international trade and economic policy, providing opportunities for curriculum development and partnerships with industry leaders.
Vanderbilt’s Procurement Office may need to adjust its strategies to account for changes in import tariffs and trade policies, ensuring cost-effective sourcing of materials and supplies.
The Vanderbilt Institute for Global Health might explore new research opportunities related to the pharmaceutical sector, particularly in light of the preferential treatment outcomes for UK pharmaceutical products.

Financial Impact

The economic prosperity deal could lead to fluctuations in the cost of imported goods, affecting Vanderbilt’s budget and financial planning, particularly for departments reliant on international materials and supplies.
Changes in trade policies may influence the availability of federal funding for research and development, necessitating adjustments in grant application strategies and partnerships with government agencies.
Vanderbilt may experience shifts in its funding landscape, particularly if federal discretionary grants prioritize sectors impacted by the trade deal, such as aerospace and pharmaceuticals.
The university’s financial aid and scholarship programs might need to consider the potential impact of economic changes on students’ financial needs and the availability of resources.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential impacts on research and financial strategies.)

Key Actions

Vanderbilt’s Office of Federal Relations should closely monitor the implementation of the United States-United Kingdom Economic Prosperity Deal, particularly the changes in tariffs and quotas on automotive, aerospace, aluminum, and steel products. This will be crucial for understanding potential impacts on research and development collaborations, especially in engineering and manufacturing sectors.
The Vanderbilt School of Engineering should explore opportunities for collaboration with UK-based aerospace and automotive industries, leveraging the tariff-free bilateral trade in aerospace products and reduced tariffs on automotive imports. This could enhance research partnerships and student exchange programs.
Vanderbilt’s Owen Graduate School of Management should assess the potential impacts of the trade deal on global supply chains and incorporate these insights into its curriculum. This will prepare students for the evolving landscape of international trade and economic policies.
The Vanderbilt Center for International Business should organize workshops and seminars to educate faculty and students about the implications of the trade deal, focusing on opportunities for research funding and international collaboration.

Opportunities

The trade deal presents an opportunity for Vanderbilt’s Law School to conduct research on international trade law and policy, particularly in the context of the new economic agreements between the United States and the United Kingdom. This research can provide valuable insights into the legal frameworks governing international trade.
Vanderbilt can capitalize on the increased market access for American exports by developing new programs and partnerships with UK institutions. This could include joint research initiatives, student exchange programs, and collaborative curriculum development, enhancing Vanderbilt’s reputation and reach in the global education sector.
The emphasis on strengthening aerospace and aircraft manufacturing supply chains offers an opportunity for Vanderbilt’s Department of Mechanical Engineering to engage in research and development projects with UK partners, potentially influencing advancements in aerospace technology.

Relevance Score: 4 (The executive order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on international collaborations and trade-related research opportunities.)

Average Relevance Score: 3.6

Timeline for Implementation

7 days after publication: The tariff‐rate quota for automobiles becomes effective 7 days after publication in the Federal Register, and the necessary notices for automotive parts and aerospace modifications must be published within the same 7-day period.
No specific timeline: The establishment of tariff‐rate quotas for aluminum and steel articles will occur at a future date as determined by the Secretary, with no fixed deadline provided.

Relevance Score: 5

Impacted Government Organizations

Department of Commerce: Tasked with publishing notices, issuing rules and regulations, and coordinating with other agencies to implement the tariff adjustments and quota measures.
United States International Trade Commission (ITC): Collaborates with the Department of Commerce to review and modify the Harmonized Tariff Schedule in accordance with the order.
U.S. Customs and Border Protection (CBP): Works in consultation with the Department of Commerce and ITC to enforce the modified tariff and quota policies for imported goods.
United States Trade Representative (USTR): Consulted for designing tariff-rate quotas for aluminum and steel articles, ensuring the economic terms align with trade objectives.
Office of Management and Budget (OMB): Although not a primary actor in the trade provisions, its functions are noted to remain unaffected, ensuring adherence to budgetary and administrative oversight.

Relevance Score: 2 (A moderate number of Federal Agencies are impacted by the order.)

Responsible Officials

Secretary of Commerce – Tasked with publishing Federal Register notices to modify the Harmonized Tariff Schedule (HTSUS), issuing rules, regulations, guidance, and procedures related to the tariff-rate quotas and other aspects outlined in the order.
United States International Trade Commission (ITC) – Required to consult with the Secretary of Commerce to ensure that modifications to the HTSUS are consistent with the directives in Sections 2 and 3.
U.S. Customs and Border Protection (CBP) – Engaged in consultations with the Secretary of Commerce to implement changes affecting tariff structures and border trade protocols.
United States Trade Representative (USTR) – Consulted by the Secretary of Commerce in the future determination and design of tariff-rate quotas under Section 4 for aluminum and steel articles.

Relevance Score: 4 (Directives directly impact agency heads, requiring their leadership in executing complex international trade adjustments).