United Kingdom IEEPA Tariffs: 10% Baseline Rate
The United Kingdom received the minimum 10% IEEPA reciprocal rate, taking effect April 5, 2025. Post-Brexit, the UK operates independently of the EU’s trade arrangements with the United States, and the two countries have not concluded a bilateral FTA, meaning UK goods faced the full 10% IEEPA rate without any preferential exemptions.
Key UK Export Categories
Scotch Whisky and Spirits: Scotch whisky is the UK’s most high-profile export to the United States. The spirits industry was particularly vocal about IEEPA tariff impacts. At $300 average wholesale value per case, a 10% IEEPA rate adds $30 per case — significant at the volumes U.S. spirits importers move.
Aerospace and Defense Components: The UK is home to major aerospace manufacturing (Rolls-Royce engines, BAE Systems components). Some aerospace goods have national security or government contract considerations that may affect duty treatment — consult a trade attorney for these entries.
Pharmaceuticals: UK pharmaceutical exports to the United States, particularly branded medications from UK-based manufacturers, paid the 10% IEEPA rate on top of any existing duties.
Financial Services and Insurance (Not Affected): Services are not subject to tariffs, so the UK’s substantial service sector exports to the U.S. are unaffected.
Luxury Goods: UK-branded luxury goods — cashmere, fine textiles, luxury accessories — paid the 10% IEEPA rate.
No FTA Complications
The lack of a UK-US FTA means CAPE eligibility for UK-origin goods is uncomplicated. If IEEPA duties appear on your 7501 for UK-origin entries during April 2025–February 2026, they are refundable. No FTA qualification analysis needed.
The 10% Rate at Scale
At 10%, the per-dollar refund rate is lower than most other covered countries. But volume matters. A spirit importer bringing in $20 million of Scotch whisky from the UK during the IEEPA period has $2 million in refundable IEEPA duties. Even at the lowest rate, high-volume importers of UK goods have meaningful CAPE opportunities.
UK Goods and Section 232
Some steel and aluminum products from the UK were subject to Section 232 tariffs separately from IEEPA. Confirm on each entry which duty types were assessed. Only IEEPA-specific amounts are refundable; Section 232 steel/aluminum duties are not.