Announced Framework Rejects Failed “Rules-Based Trade” and Embraces Managed Trade
WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today praised the Trump Administration for a historic pivot towards prioritizing tariff revenue as well as industrial protection in the newly announced U.S.-UK trade framework. By preserving the 10% universal tariff, the Administration affirms what it has been saying to anyone willing to listen: they are serious about using tariff revenue to offset domestic taxes. Secondly, introducing a quota system to cap automobile imports is a decisive rejection away from the failed “rules-based” trade model that has long undermined U.S. manufacturing and American workers.
“This deal is a clear validation of President Trump’s America First trade strategy,” said Zach Mottl, Chairman of CPA. “By maintaining the 10% baseline tariff and capping UK auto imports at 100,000 vehicles per year before higher tariffs apply, the administration is demonstrating that trade policy can and should be used to protect and rebuild domestic industry. This is exactly the kind of strategic, outcomes-focused approach we’ve been advocating.”
Under the agreement, the first 100,000 UK-made vehicles imported into the U.S. annually will be subject to the universal 10% revenue tariff. Any additional vehicles will be subject to a supplemental national security tariff, currently set at 25%. This quota system marks a departure from a century’s worth of terrible trade deals that facilitated unlimited imports under the guise of “rules-based trade”, which had the effect of wiping out American manufacturers, farmers, growers, and ranchers.
“For decades, the U.S. pursued trade agreements that prioritized abstract rules over real-world outcomes, leading to the decimation of key industries,” Mottl continued. “This agreement rejects that flawed model. It recognizes that trade policy must be grounded in economic reality and national interest, not ideological commitments to ‘rules-based’ systems that have failed our workers.”
CPA also highlighted the deal’s potential to strengthen U.S.-UK cooperation in countering dangerous import penetration from countries like China. With Chinese automakers such as BYD and Polestar gaining market share in the UK, the agreement sets the stage for coordinated action against market distortions that threaten both nations’ industrial bases.
Areas for Concern and Improvement
While the agreement is a major step towards managed trade that prioritizes U.S. domestic industry, CPA remains keen to see the text of the agreement. Based on the announcement and fact sheet only, CPA notes areas of concern and for improvement, particularly regarding the over-quota tariff rate and the need for a dynamic quota adjustment mechanism.
“A 25% over-quota tariff is not sufficient to deter excessive imports, especially in sectors like autos and steel where foreign producers have significant cost advantages,” Mottl cautioned. “We have recommended that the Administration update its Section 232 actions with specific tariffs assessed by volumes as opposed to values that provide clearer protection for domestic industries. Additionally, as technological advancements and market conditions evolve, it’s crucial to have a system in place to adjust quotas accordingly, similar to how the USDA manages agricultural import quotas.”
Fixing the over-quota tariff should not affect the new agreement with the UK, and should be done domestically and globally via the Section 232 process.
An area of concern is the advertised “streamlined customs procedures” in the White House Fact Sheet. U.S. customs law has been so severely undermined over successive decades that our market — in particular the e-commerce market — has become a lawless wild west of contraband and narcotics, including fentanyl. U.S. customs law needs to be restored and strengthened, not “streamlined”, which has proven to be a euphemism for lawless unexamined small package imports.
Another concern from the Fact Sheet is the statement that the agreement “commits the countries to work together to enhance industrial and agricultural market access.” More market access is incompatible with tariffs for revenue or protection. Especially in agriculture, the United States has had a policy that prioritized more market access abroad for generations, and it has always failed.
Overall, CPA views the U.S.-UK trade framework as a positive development that reinforces the principles of outcome-focused managed trade and industrial sovereignty. This agreement demonstrates that we can negotiate trade deals that serve the interests of American workers and industries. CPA encourages the Administration to formally reject and withdraw from existing trade agreement concessions while it pursues new managed trade agreements. This will ensure a lasting legacy and serve as a testament to the effectiveness of a trade policy that puts America first.
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