The UK US Trade Deal in Practice: What UK Companies Expanding to America Need to Know About Tariffs, Trade Compliance and Cross-Border Contracts

The UK US trade deal has moved transatlantic trade policy to the top of the agenda for any UK company expanding to the United States. Understanding how the UK US trade deal, US tariffs and cross-border contracts fit together is now essential for protecting margins and managing legal risk.

Having just returned from SelectUSA in Washington DC, my key takeaway was clear: the United States remains firmly open for business, particularly for international companies looking to invest, expand and build a serious presence in the American market.

SelectUSA is the US government’s flagship investment platform, designed to promote foreign direct investment into the United States. Since its creation, SelectUSA has facilitated more than $200 billion in investment and helped create or retain over 200,000 US jobs, according to publicly available SelectUSA programme information. That reflects the scale of the opportunity for international businesses looking at US expansion.

But opportunity does not remove risk. From a legal standpoint, UK companies expanding to the US need to think carefully about US tariffs, customs duties, cross-border contracts, regulatory compliance and the structure of their US market entry strategy.

That point has become even more important following recent developments in the UK US trade deal. In May 2025, the UK and US announced an Economic Prosperity Deal. Reporting at the time stated that the agreement reduced tariffs on UK car exports to the US from 27.5% to 10% within a quota, and removed tariffs on certain UK steel and aluminium exports, although wider tariff and trade issues remained unresolved.

For UK businesses with ambitions across the Atlantic, 2026 has made one thing clear: trade policy is no longer a background consideration. The recent UK US trade deal, set against a backdrop of shifting US import tariffs, customs duties and fast-moving US trade policy, has changed the legal and commercial calculus for any UK company selling into, sourcing from, exporting to, or expanding into the United States.

The figures underline why this matters. Financial Times reporting, based on Office for National Statistics analysis, found that UK goods exports to the US averaged £4.7 billion per month between April 2025 and February 2026, compared with a 2024 monthly average of £5.5 billion. The same report linked the decline to the tariff environment introduced in April 2025, showing that US tariffs on UK goods can affect real trade flows, not just theoretical policy debates.

For founders, finance teams and business owners considering US expansion, the headlines move quickly, but the underlying message is steady: your commercial strategy, US market entry strategy and legal documents need to keep pace.

Here is what UK companies expanding to the US should be thinking about from a legal standpoint.

US tariffs are a commercial and legal risk, not just a customs line item

When duties on goods entering the US rise, fall, or become uncertain, the impact ripples straight through to pricing, margins and supplier relationships. A tariff that lands on a key input can quietly turn a profitable product line into a loss-maker.

For UK companies exporting to America or building a US supply chain, the practical legal question is not only “what is the rate today?” It is “who bears the cost if the rate changes tomorrow?”

That question is usually answered in your contracts, not in the customs paperwork.

The US customs system is also not simply an administrative formality. US customs duties are paid by the importer of record, and goods are not legally entered until US Customs and Border Protection has authorised delivery and estimated duties have been paid. Public guidance on US customs duties also makes clear that failure to comply can result in seizure of goods and penalties.

Revisit the cross-border contracts that allocate tariff risk

This is where law and commercial reality meet. Several clauses deserve a fresh legal review in light of the current UK US trade deal, the wider US tariffs environment and the risks facing companies involved in cross-border business expansion.

Price adjustment and cost pass-through provisions determine whether you or your customer absorbs a sudden duty increase. Many UK-drafted agreements are silent on this, leaving the cost to fall wherever it happens to land.

Delivery terms and Incoterms allocate responsibility for import duties, customs clearance and delivery risk. Getting these wrong can mean unexpectedly owning a tariff bill.

Force majeure and change-in-law clauses, often treated as boilerplate, can become decisive when government policy shifts the economics of a deal.

Termination and renegotiation rights give you room to revisit terms if conditions move dramatically against you.

For UK companies entering the American market, US commercial contracts and English law contracts may treat several of these areas differently. A clause that protects you under English law may not behave the same way in a US-governed agreement. That is why cross-border contracts should be reviewed before they become a problem.

Customs compliance, export compliance and international trade compliance

Importing into the US brings legal obligations beyond paying duty. Correct product classification, accurate country-of-origin determination and proper customs valuation all carry real consequences if handled incorrectly.

Under US customs law, importers have a duty to exercise reasonable care when providing classification, valuation and other import data to US Customs and Border Protection. If an importer fails to exercise reasonable care, customs penalties can follow. This makes customs compliance and international trade compliance a legal governance issue, not merely an operational task for a freight forwarder.

For UK businesses exporting to the USA, export compliance also matters. Businesses need to understand whether their products are subject to restrictions, licensing requirements, sanctions exposure, end-user checks or other regulatory controls. In many cases, regulatory compliance for exporters should be reviewed before contracts are signed, goods are shipped or a US entity is established.

Trade deals and preferential tariff arrangements often hinge on origin rules that decide whether your goods qualify for preferential treatment at all. For UK companies expanding to the US, building a defensible customs compliance, export compliance and international trade compliance process now is far cheaper than untangling a legal problem later.

From a legal standpoint, UK companies should be asking:

• Are our goods correctly classified for US customs purposes?
• Can we evidence country of origin?
• Do our contracts say who is responsible for tariffs, duty, customs clearance and delay?
• Are our pricing mechanisms flexible enough if tariff rates change?
• Have we considered export compliance and regulatory compliance for exporters?
• Does our US market entry structure expose the UK parent company to avoidable legal or tax risk?

These are not just operational questions. They are legal risk questions.

The opportunity hiding in the disruption

One of the strongest messages from SelectUSA was that the US is not waiting passively for international investment. State-level economic development organisations are actively competing for overseas businesses, promoting their regions as platforms for growth, innovation, manufacturing, technology, logistics and access to the world’s largest consumer market.

That matters for UK companies. The opportunity is not only to sell into America, but to structure a US presence properly from the outset. That means choosing the right state, understanding local incentives, reviewing cross-border contracts, managing regulatory exposure and ensuring the expansion is legally fit for purpose.

It is also worth remembering that trade arrangements between the US and UK are, on balance, designed to make transatlantic business easier over time. Companies that understand the rules early can use them as an advantage by structuring their US entry, supply chains, commercial contracts, customs compliance and international trade compliance processes to take full benefit of preferential terms while competitors are still reacting to headlines.

For many UK founders, this is precisely the right moment to formalise a US expansion strategy rather than delay it. The opportunity is not just commercial; it is legal and strategic. A well-structured approach can reduce risk, protect margins and create a clearer path into the US market.

What UK companies expanding to the US should do now

If your business touches the US market, three steps are worth taking in the near term.

First, review your existing contracts for tariff, duty, Incoterms and change-in-law exposure.

Second, confirm how your goods are classified, where they are deemed to originate and whether your customs valuation process is defensible.

Third, pressure-test your US expansion structure against the current trade environment rather than last year’s assumptions.

Cross-border trade rules reward preparation and punish improvisation. At Abrams, we help UK companies navigate exactly this intersection of US commercial contracts, cross-border contracts, customs compliance, export compliance, regulatory compliance and international expansion strategy — turning a shifting trade landscape into a clear legal plan.

If you would like to discuss how the current UK US trade deal, US import tariffs or US market entry requirements affect your business, get in touch.