Welcome to the September BABN Policy and Trade Update.

This summer saw an unusual high level of activity around US-UK engagements: Prime Minister Sir Keir Starmer was in Washington in August for meetings at the White House with President Trump and allied leaders. Vice President JD Vance used his vacation in the Cotswolds to meet with Foreign Secretary David Lammy; and teams are busy preparing President Trump’s State Visit to the UK on 17-19 September, hosted by HM The King at Windsor Castle. BAB’s own transatlantic engagement included hosting a special reception in Washington, D.C. with the British-American Parliamentary Group, in partnership with BABA Washington D.C., which brought together lawmakers, industry leaders, and policymakers to celebrate and strengthen the transatlantic partnership.

Meanwhile, BAB released its analysis of the US-UK Economic Prosperity Deal (EPD). The paper welcomed the fact that the UK was the first country to secure an agreement with the US and recognised the value of key sectoral wins, such as tariff reductions for autos and aerospace and preferential treatment for potential future Section 232 actions. At the same time, the analysis underlined that the EPD leaves UK exporters worse off than before the US tariff changes introduced earlier this year. The paper highlighted ongoing challenges such as the new baseline 10% tariff on nearly all UK goods, the lack of growth potential in quota arrangements, and uncertainty around how future US trade policy and legal challenges may affect the agreement. BAB concluded that while the EPD is an important first step, it must be seen as a foundation for deeper negotiations to secure broader market access and lasting certainty for UK businesses.

On the UK side, the UK Parliament’s Business and Trade Committee opened an inquiry into the UK’s trade with the US, India, and the EU, offering a timely opportunity to assess how the UK government is navigating shifting global conditions. BAB contributed written evidence to this inquiry on behalf of our members, focusing in particular on the UK-US EPD.

See below for a breakdown of policy and trade headlines and our published works.

BAB Analysis of the US-UK Economic Prosperity Deal
7 August 2025

What happened: Earlier in August, BAB published its analysis of the US-UK Economic Prosperity Deal.

Summary: This paper, produced in consultation with leading trade associations, BAB member companies, and trade experts, identifies the key elements of the EPD and reviews progress since it was agreed. It also outlines BAB’s recommendations on what should be prioritized as governments seek to bring the agreement to life, focusing on addressing tariffs, reducing non-tariff barriers, digital trade, economic security, and other trade policy issues.

Press release: Commenting on the release of the paper, Duncan Edwards, CEO of BAB, said: “The UK government should be commended for the speed with which they negotiated this agreement. The EPD shows the US is fully committed to its new trade approach, even with its closest allies, but it was significant that the UK was the first to get a deal. There is a lot in the agreement still to be negotiated and only time will tell the extent to which the UK has got better terms than its competitors.”

Read the full analysis: You can read the analysis here.

BAB Submission to Business and Trade Committee Call for Evidence
31 August 2025

Overview: The Business and Trade Committee launched an inquiry into the UK’s trade with the US, India and the EU. The inquiry examined how the UK government’s trade policy is responding to changing global conditions, including recent US tariff actions and the outcomes of new trade agreements..

BAB’s work: BAB submitted a response to this inquiry. Our submission focused on the UK-US Economic Prosperity Deal (EPD) agreed in May, providing an assessment of its value for UK businesses and its implications for the wider trade relationship. We highlighted both the positive elements, such as tariff reductions for key UK sectors and preferential treatment in potential Section 232 actions, as well as the remaining challenges, including higher baseline tariffs than before ‘Liberation Day’ and uncertainty around future US trade policy.

Learn more: We will be able to share our full response once it’s been made public by the Committee.

View the full September BABN Policy and Trade Update here