The British Chambers of Commerce has warned that President Donald Trump’s latest tariff increase will impact thousands of UK exporters and further weaken global economic growth.
Trump announced he was raising the existing 10% worldwide tariff to 15%, “effective immediately”, following a US Supreme Court ruling that struck down his previous use of emergency powers to impose levies.
The new measures, introduced under different legislation, mean a potential additional 5% tariff on most UK goods exports to the US, excluding those covered by the Economic Prosperity Deal (EPD).
William Bain, head of trade policy at the BCC, 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 (EPD).
“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 UK Government is continuing high-level discussions with Washington and is expected to double down on the existing EPD rather than walk away.
Education Secretary Bridget Phillipson acknowledged “uncertainty” for firms but said the UK expects its preferential trade arrangements to continue.
The 15% levy is the maximum allowed under Section 122 of the 1974 Trade Act and will temporarily push the effective US tariff rate higher, with economists warning it could reverse recent reductions secured by trading partners, including the UK.
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