backOn 13 April 2026, the UK House of Commons Business and Trade Committee (the “Committee”) launched an inquiry into the UK’s economic relationship with the United States. The inquiry focuses on whether the Economic Prosperity Deal (“EPD”) and related trade agreements are delivering improved market access for UK businesses “amid concerns that continued turbulence is frustrating ambitions for deeper trade.”
As part of its inquiry, the Committee has issued a call for evidence and is inviting written submissions on the UK-U.S. economic relationship, including the following topics:
- Strategic assessment of the UK-U.S. economic relationship;
- The EPD;
- The Arrangement on Pharmaceutical Pricing (“Pharmaceutical Arrangement”);
- The Technology Prosperity Deal; and
- Critical minerals and economic security.
The deadline for written submissions is 18 May 2026.
This inquiry provides an opportunity for UK businesses to comment on the impact of U.S. tariffs on their businesses and provide input on priorities for future UK-U.S. trade negotiations.
Background
Since the U.S. imposition of tariffs in 2025, the UK has negotiated a series of trade agreements with the United States to mitigate the impact of tariffs on UK exporters. In May 2025, the UK and the United States agreed to the EPD – a non-binding agreement which reduces tariffs in key sectors and establishes a framework for future cooperation. In September 2025, the UK and the United States also published the Technology Prosperity Deal (“TPD”), which was intended to improve trade and investment in the technology sector; however, the TPD has since been partially suspended.
Most recently, the UK and United States published the Pharmaceutical Arrangement which requires the UK to increase the net price paid by the National Health Service (“NHS”) for new medicines by 25% from April 2026 and double its spending on new medicines by 2036. In return, UK pharmaceuticals and medical technology exports will be exempted from additional U.S. tariffs under U.S. Section 232 or Section 301 investigations for at least three years.
Despite these trade agreements, significant tariff barriers remain for UK exporters. The EPD has only been partially implemented, and trade negotiations between the U.S. and UK Governments are ongoing. In addition, it remains unclear whether the suspended TPD will be restored. As a result, most UK goods remain subject to a 10% tariff and UK steel and aluminium exports remain subject to a 25% tariff.
Against this backdrop, the Committee launched an inquiry to examine the UK Government’s strategy for the country’s economic relationship with the United States, including the current state of tariff and non-tariff barriers, the effectiveness of recent agreements, and priorities for future negotiations.
Scope Of The Committee’s Inquiry
Strategic Assessment
The Committee seeks evidence on the impact of U.S. tariffs and trade policy uncertainty on UK businesses, including UK small and medium-sized businesses’ exposure to ongoing U.S. tariff uncertainty; whether the Government has provided clear, timely guidance on tariff rates; and what each UK-U.S. trade agreement has delivered. The Committee also invites views on how effectively Government departments have coordinated work on the EPD and subsequent trade deals.
Economic Prosperity Deal
The Committee seeks evidence on the extent to which the EPD has mitigated U.S. tariffs, what the agreement has failed to deliver, and priorities for next steps to increase goods and services trade. For the steel and aluminium sector, the Committee also invites views on the commercial impact of the continuing 25% tariff on UK exports, the status of quota arrangements, and the UK Government’s minimum acceptable outcome in negotiations.
In addition, the Committee seeks input on the progress on non-tariff barriers across agriculture, industrial mutual recognition, and standards recognition, as well as the UK’s priorities and “red lines” in digital trade negotiations covering financial services, paperless trade, and digitised customs procedures.
Pharmaceutical Arrangement
The Committee seeks views on whether the terms of the Pharmaceutical Arrangement represent a fair and balanced agreement; what further provisions are needed to protect the public interest; and the Arrangement’s likely impacts on investment in UK life sciences, NHS procurement budgets, and drug supply chain security.
Technology Prosperity Deal
Evidence is sought on whether the TPD has improved trade and investment and the impact of its partial suspension. Submissions are also invited on which TPD commitments are most important to deliver and what is missing from the TPD that should be prioritised by the UK and U.S. governments.
In addition, the Committee asks what a “durable” UK–U.S. technology agreement should cover, including artificial intelligence (“AI”) governance, data flows, and digital infrastructure. The Committee also raises questions about data and digital sovereignty, such as how the UK can safeguard information supply chains and the risks of outsourcing data processing to the United States, particularly for AI.
Critical Minerals and Economic Security
The Committee asks about the impact of the UK–U.S. Memorandum of Understanding on critical minerals, whether the commitments are sufficient to secure critical minerals for the UK, and what further commitments are required. The Committee also seeks views on the extent to which existing UK-U.S. agreements address economic security risks, including supply chain resilience, export controls, and technology transfer.
Next Steps
Submissions in response to the call for input will help shape the Committee’s inquiry, inform public hearings, and support the Committee’s final report, which will examine:
- whether the UK has a coherent strategy for its economic relationship with the United States;
- the current state of tariffs and sectoral barriers;
- what the EPD has delivered and where it is falling short; and
- the priorities for future UK–U.S. trade cooperation in a more contested global economy.
The Committee plans to issue its report before the Parliamentary summer recess, which is provisionally scheduled to begin on 16 July 2026.
UK To Develop Tool For Anti-Coercion
Separate from this inquiry, the UK Department for Business and Trade published an open consultation on the UK’s adoption of new defensive trade powers to counter acts of “adverse economic pressure,” defined as the threat or use of economic measures by a foreign state against the UK to obtain or prevent a change in law, policy, or action, or to damage the UK’s economic interests. Examples of such pressure include unexplained customs delays, the sudden imposition of arbitrary border procedures or tariffs, threats to withdraw loans or investments, and state-encouraged boycotts of companies or tourism. The proposed approach resembles the EU Anti‑Coercion Instrument (“ACI”), which entered into force on 27 December 2023 and provides the European Union with a legal framework for responding to economic coercion by third countries through proportionate countermeasures. Although the ACI has not yet been formally invoked, its significance is widely regarded as lying primarily in its deterrent effect. Drawing on this model, the UK’s proposed new trade tool could similarly empower the UK to impose countermeasures across various areas of the economy (e.g., goods and services, procurement, investment, and intellectual property) in response to harmful foreign trade practices. The deadline to submit evidence on the consultation is 18 June 2026.
Key Considerations
The United States remains the UK’s largest single-country trading partner, accounting for 17% of total trade and 22% of exports in 2024. However, the imposition of U.S. tariffs has prompted the UK Government to reassess its trade strategy. Together, the Committee’s inquiry and the Government’s consideration of new defensive trade powers signal a shift in the UK’s approach to trade and economic security, creating an opportunity for businesses to inform the UK’s future trade agenda.
Businesses, particularly those with exposure to U.S. trade and operating in strategic sectors such as critical minerals, life sciences, technology, financial services, and digital trade, may wish to respond to these consultations.
Our team is closely monitoring these UK trade developments and has extensive experience advising clients on trade policy, including the impact of U.S. tariffs on their businesses. If you have any questions or would like to discuss written comments, please contact us.