Navigating the Tariff Storm Part VII: Trade Policy Update

By Daniel Hyla & David Teeple

Tariff-related agreements have been overshadowed by the evolving Israel-Iran conflict, which has had the full attention of the Administration. Despite this, the United States finalized a new trade agreement with the United Kingdom on June 16th—one that expands market access for U.S. exporters and seeks to strengthen cooperation on national security and supply chain integrity. This executive order¹ establishes new US-UK trade arrangements that reduce non-tariff barriers discriminating against American products while addressing national security concerns through a structured negotiation framework. The deal provides preferential treatment for UK pharmaceuticals pending a security review, reduces automobile tariffs to 10% for the first 100,000 UK vehicles imported annually (with additional vehicles facing 25% tariffs), eliminates certain aerospace tariffs to strengthen supply chains, and creates new tariff-rate quotas for UK steel and aluminum products. The agreement is designed to strengthen bilateral relations while maintaining security protections, and it serves as a model for reciprocal trade arrangements with other partners.

Looking ahead, the July 8th deadline—informally dubbed “Liberation Day 2.0”—continues to generate uncertainty across global supply chains. A Washington Correspondent² has presented three distinct scenarios:

• “It could be a nonevent with additional deadline extensions in the offing.”
• “It might be a day of celebration of long-promised trade deals that have yet to materialize.”
• “It could also be a day when the hammer comes down and tariffs are simply dictated.”

Businesses should plan a strategy based on each of the possible outcomes. This includes stress-test sourcing strategies, modeling tariff impact scenarios, and strengthening supplier diversification plans. The best defense against policy uncertainty is agility—the ability to pivot quickly when the landscape changes.

Let Sedlak assist you in addressing these challenging times. With over 65 years of experience advising industry leading organizations, Sedlak will help address the challenges of today and prepare you for an ever-evolving future. Reach out to Dave Teeple at dteeple@jasedlak.com or Daniel Hyla at dhyla@jasedlak.com for more information.

Sources

1. Fact Sheet: Implementing the General Terms of the U.S.-UK Economic Prosperity Deal – The White House – www.whitehouse.gov
2. The Trump administration is offering 3 different scenarios for how ‘Liberation Day 2.0’ may play out – www.finance.yahoo.com