The UK could be among the worst hit countries if US president Donald Trump’s new 15% import tariffs go ahead.
Following the Supreme Court outlawing most of the global tariffs announced by Trump last year, the president said he will introduce a global tariff of 15% for 150 days under the never before used Section 122 of the 1974 Trade Act.
According to analysis by Global Trade Alert, the UK would be one of the worst hit countries if the new tariff goes ahead because it previously negotiated a 10% deal.
Other countries, like Brazil, China and India, would be much better off though because their tariffs are much higher.
Tariffs on cars, steel and pharma in a separate UK-US deal are not expected to change, but other products could be affected by the 15% announcement.
Prime minister Keir Starmer’s official spokeman said the situation is evolving, talks are ongoing and no reciprocal action is “off the table” if the US does not honour its tariff deal with the UK.
William Bain, head of trade policy at the British Chambers of Commerce, said:
“The 40,000 UK companies exporting goods to the US will be dismayed at this latest turn of events. We had feared that the president’s Plan B response could be worse for British businesses and so it is proving.
“This means an extra 5% increase in tariffs on a wide range of UK goods exports to the US, except those covered under the Economic Prosperity Deal.
“This will be bad for trade, bad for US consumers and businesses and weaken global economic growth. Businesses on both sides of the Atlantic need a period of clarity and certainty. Higher tariffs are not the way to achieve that.
“The one ray of light in this new scenario is that this 15% tariff will need to be approved by Congress after 150 days. It is now vital that the government and business continue dialogue with their US counterparts to retain the UK’s competitive advantage and reduce tariffs as far as possible.”