The British Chambers of Commerce (BCC) has urged the government to adopt a six-point support plan as a new US tariff on UK exports takes effect.
The BCC estimates the increase will raise between £2bn and £3bn in additional levies on UK exports to the US, with costs likely to be absorbed by exporters, importers or consumers.
New research from the BCC’s Insights Unit found that one quarter of exporters said a 10–15% rise in export costs would put more than half of their overseas sales at risk. Four in five feel exposed to geopolitical risks, and one in eight are exploring shifts to reduce reliance on the US market.
William Bain, Head of Trade Policy at the BCC, said: “British businesses exporting to the US have been on a non-stop rollercoaster ride for almost a year and their patience is wearing thin.
“The constant shifting sands on tariffs have worn them down and it is no surprise that so many are now considering a change in emphasis to other markets.
“That’s a sensible move, but the US remains our single biggest trading partner and to disengage it with entirely would be a mistake. Last year it accounted for £60bn worth of UK sales.
“It is absolutely vital that the UK continues to negotiate with the US, both on the new 15% tariff and other levies already in place, such as on steel and aluminium. It should also seek immediate discussions with Congress, which now has an important role going forward.”
The BCC is calling for coordinated diplomacy with international partners, increased UK Export Finance capacity, expanded support from the British Business Bank, a review of the UK Global Tariff, and enhanced export support to help firms diversify into new markets.
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