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UK Faces Significant Economic Risk From Trump’s New Global Tariff Regime
British exporters and policymakers brace for heightened costs and uncertainty after Washington imposes a blanket 15 per cent import duty that could upend trade terms
After the United States Supreme Court struck down large swathes of former President Donald Trump’s earlier tariff framework, the Trump administration swiftly introduced a new global 15 per cent import tariff under the Trade Act of 1974. The abrupt shift in U.S. trade policy has sent shockwaves through global markets, leaving the United Kingdom particularly exposed as its exporters face higher duties and unresolved trade terms with the United States.
British officials have acknowledged the uncertainty this creates for UK businesses and are intensifying negotiations in Washington to preserve favourable arrangements previously agreed with U.S. counterparts.
The policy change follows a court decision that invalidated Trump’s use of emergency powers to enforce broad tariffs, prompting a rapid pivot to a blanket duty that applies to virtually all imports unless otherwise exempted.
While the U.S. Trade Representative has insisted that existing bilateral arrangements, including those with the United Kingdom, will be upheld, the introduction of a 15 per cent levy — up from a brief announcement of ten per cent — has heightened anxiety among UK exporters.
London’s negotiations are focused on securing clarity that preferential terms struck with the United States in recent months remain intact and shield British goods from punitive extra charges.
The implications of the new tariff regime extend beyond immediate levy rates.
The British Chambers of Commerce has warned that thousands of UK firms, particularly those not covered by bespoke trade arrangements, will see their cost competitiveness in the U.S. market eroded, potentially slowing growth and investment.
Key UK exports — including machinery, automotive components, chemicals and pharmaceuticals — could become less attractive to American buyers if import duties rise or if earlier tariff reductions are rolled back or layered with the new global rate.
Economic commentators have also noted that the unpredictability surrounding U.S. trade policy may dampen business confidence, complicate long-term planning, and weigh on the UK’s broader economic outlook.
London’s Treasury and Department for International Trade officials are examining the economic data and engaging with U.S. counterparts to limit damage and to reinforce that a stable, reciprocal trading relationship benefits both economies.
The government has stressed its determination to protect British exporters and maintain open markets, even as it navigates these unprecedented trade policy shifts from Washington.
British officials have acknowledged the uncertainty this creates for UK businesses and are intensifying negotiations in Washington to preserve favourable arrangements previously agreed with U.S. counterparts.
The policy change follows a court decision that invalidated Trump’s use of emergency powers to enforce broad tariffs, prompting a rapid pivot to a blanket duty that applies to virtually all imports unless otherwise exempted.
While the U.S. Trade Representative has insisted that existing bilateral arrangements, including those with the United Kingdom, will be upheld, the introduction of a 15 per cent levy — up from a brief announcement of ten per cent — has heightened anxiety among UK exporters.
London’s negotiations are focused on securing clarity that preferential terms struck with the United States in recent months remain intact and shield British goods from punitive extra charges.
The implications of the new tariff regime extend beyond immediate levy rates.
The British Chambers of Commerce has warned that thousands of UK firms, particularly those not covered by bespoke trade arrangements, will see their cost competitiveness in the U.S. market eroded, potentially slowing growth and investment.
Key UK exports — including machinery, automotive components, chemicals and pharmaceuticals — could become less attractive to American buyers if import duties rise or if earlier tariff reductions are rolled back or layered with the new global rate.
Economic commentators have also noted that the unpredictability surrounding U.S. trade policy may dampen business confidence, complicate long-term planning, and weigh on the UK’s broader economic outlook.
London’s Treasury and Department for International Trade officials are examining the economic data and engaging with U.S. counterparts to limit damage and to reinforce that a stable, reciprocal trading relationship benefits both economies.
The government has stressed its determination to protect British exporters and maintain open markets, even as it navigates these unprecedented trade policy shifts from Washington.
