Fact Sheet: Implementing the General Terms of the U.S.-UK Economic Prosperity Deal

6/17/2025

Fact Sheets

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Action Summary

Historic Trade Deal Implementation: President Trump signed an Executive Order to implement the U.S.-UK Economic Prosperity Deal, expanding market access for American exports and addressing national security concerns.
Market Access and Tariffs:
- Agricultural Exports: Billions of dollars of increased access, notably for beef, ethanol, and other U.S. agricultural products.
- Automobiles: The first 100,000 UK-imported vehicles each year incur a 10% tariff; additional vehicles are subject to a 25% Section 232 tariff. UK automotive parts for use in UK vehicles are also subject to a 10% tariff.
- Aerospace: Certain products will no longer face tariffs, reinforcing supply chains in aerospace and aircraft manufacturing.
- Steel and Aluminum: Tariff-rate quotas will be established for UK products with items outside of quotas or non-compliant with set requirements remaining under the existing Section 232 tariffs.
Non-Tariff Barrier Reductions: The UK commits to reducing or eliminating practices that unfairly discriminate and negatively impact the U.S. manufacturing base and national security.
Section 232 Investigations and Pharmaceutical Outcomes: The U.S. and UK will negotiate preferential outcomes for pharmaceuticals based on Section 232 findings, while setting a structured approach for addressing future national security issues in key sectors.
Bilateral Relations and Reciprocal Trade: The deal is framed as a means to strengthen U.S.-UK ties, promote reciprocal trade opportunities, and set an example for other trading partners.
Context of Broader Trade Policy: The action follows earlier measures including a 10% tariff imposed on all countries on April 2, 2025, aimed at combating unfair trade practices and protecting American industries.
Key Remarks:
- President Trump highlighted the significant boost in market access and reduction of discriminatory barriers benefiting American exporters.
- Prime Minister Starmer emphasized job creation and enhanced bilateral trade as major benefits of the deal.

Risks & Considerations

The Executive Order implementing the U.S.-UK Economic Prosperity Deal could lead to increased competition for American educational institutions, including Vanderbilt University, as the deal enhances market access for American exports and reduces barriers for UK products. This may affect the university’s partnerships and collaborations with UK institutions.
The focus on reducing non-tariff barriers and enhancing market access may shift federal priorities and funding towards sectors like agriculture and manufacturing, potentially impacting the availability of federal grants for educational and research institutions.
The deal’s emphasis on national security and trade protection measures, such as tariffs on automobiles and aerospace products, could influence the university’s research and development initiatives, particularly in fields related to international trade, economics, and public policy.
Vanderbilt University may need to consider how changes in trade policies and economic relationships with the UK could affect its international student body, faculty exchanges, and global research collaborations.

Impacted Programs

Vanderbilt’s Owen Graduate School of Management may see increased demand for expertise in international trade and economic policy, presenting opportunities for research and collaboration with industry partners.
The Department of Economics could play a crucial role in analyzing the economic impacts of the trade deal and providing insights into its effects on the U.S. and global economies.
Vanderbilt’s International Student and Scholar Services might need to adjust its strategies to accommodate potential changes in student demographics and international collaborations resulting from the trade deal.
The Office of Federal Relations may need to engage with policymakers to ensure that the university’s interests are considered in the implementation of the trade deal and related policies.

Financial Impact

The reallocation of federal resources towards sectors prioritized by the trade deal could impact the funding landscape for educational and research institutions, necessitating adjustments in grant application strategies and partnerships.
Vanderbilt University might experience changes in its funding opportunities, particularly if federal discretionary grants prioritize sectors like agriculture and manufacturing over education and research.
There may be increased opportunities for Vanderbilt to secure funding for research and development in areas related to international trade, economic policy, and national security, particularly through collaborations with federal agencies and industry partners.
The trade deal could influence the demographics of students applying to Vanderbilt, potentially affecting tuition revenue and financial aid distribution, especially if there are changes in international student enrollment.

Relevance Score: 3 (The order presents moderate risks involving compliance or ethics, with potential impacts on funding and international collaborations.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the implementation of the U.S.-UK Economic Prosperity Deal to identify potential impacts on research funding and collaborations, particularly in sectors like aerospace and pharmaceuticals. Engaging with federal agencies and industry partners can help Vanderbilt align its research priorities with new market opportunities.
The Owen Graduate School of Management could explore opportunities to develop programs or courses focused on international trade and economic policy, leveraging the U.S.-UK trade deal as a case study. This could enhance the school’s curriculum and attract students interested in global business dynamics.
Vanderbilt’s Agricultural Research Programs should assess the potential impacts of increased market access for American agricultural exports. Collaborating with industry stakeholders and government agencies can help identify research opportunities that support the agricultural sector’s growth and innovation.
The Department of Political Science should conduct research on the broader implications of the trade deal for U.S. economic and national security policies. This research can provide valuable insights into the geopolitical dynamics of trade agreements and their impact on domestic industries.
Vanderbilt’s International Student Office should evaluate the potential effects of the trade deal on student exchange programs and partnerships with UK institutions. Strengthening these relationships can enhance Vanderbilt’s global presence and attract international students.

Opportunities

The trade deal presents an opportunity for Vanderbilt’s Law School to offer specialized courses or seminars on international trade law and policy. This could position the school as a leader in legal education related to global trade agreements.
Vanderbilt can capitalize on the increased focus on reciprocal trade by developing partnerships with UK universities and research institutions. Collaborative research initiatives and joint academic programs can enhance Vanderbilt’s reputation and expand its international network.
The emphasis on reducing non-tariff barriers offers an opportunity for Vanderbilt’s Center for Technology Transfer and Commercialization to engage in technology transfer and commercialization activities with UK partners. By facilitating the exchange of innovations, the center can contribute to economic growth and technological advancement.
By engaging with policymakers and industry leaders, Vanderbilt can position itself as a thought leader in the national conversation on trade policy. Hosting conferences, workshops, and public forums on the implications of the U.S.-UK trade deal can further establish Vanderbilt as a hub for innovative economic thought and practice.

Relevance Score: 4 (The trade deal presents significant opportunities for Vanderbilt’s programs and requires major process changes to align with new market dynamics.)

Average Relevance Score: 2.8

Timeline for Implementation

N/A: No explicit implementation deadlines or timelines were specified in the executive action, and the directives seem to take effect as of the signing date with continuous ongoing processes.

Relevance Score: 1

Impacted Government Organizations

Department of Commerce: Charged with establishing tariff-rate quotas for UK products and overseeing aspects of the trade deal implementation, particularly related to Section 232 measures.
U.S. Trade Representative (USTR): Collaborates with the Department of Commerce in negotiating and implementing preferential trade treatment outcomes and monitoring compliance with agreed trade terms.

Relevance Score: 1 (Only 2 key Federal Agencies are directly impacted by the order.)

Responsible Officials

Secretary of Commerce – Charged with establishing tariff‐rate quotas for steel and aluminum articles from the UK, a directive that requires high-level coordination and policy adjustment.
U.S. Trade Representative (USTR) – Works in consultation with the Secretary of Commerce to implement tariff-rate quotas and ensure compliance with the Economic Prosperity Deal’s provisions.

Relevance Score: 5 (Directives directly affect Cabinet-level officials responsible for high-stakes trade policy implementation.)