UK Faces Biggest Tariff Blow from Trump’s Trade Policy Changes

According to the Economic Desk of Webangah News Agency, the United Kingdom stands to be the primary loser from President Donald Trump’s tariff adjustments, as revised rates are expected to increase costs for British exporters. Previously, the UK benefited from a relatively low 10% reciprocal tariff rate, affording it a competitive edge. However, President Trump’s pledge to re-impose a 15% tariff across the board means businesses may now face significantly higher duties.

Global Trade Alert data indicates that the UK will experience the most substantial tariff increase resulting from this decision, followed by Italy and Singapore. Conversely, Brazil, China, and India are projected to reap the greatest benefits.

Sam Lowe, a trade specialist at Flint Global in London, commented, “Currently, there is no clarity on whether the agreed 10% tariff will be upheld, but until the U.S. takes action, we must assume it will be 15%.”

British officials are reportedly engaged in efforts to persuade the U.S. administration to exempt the UK from these elevated tariffs, citing concerns over potential economic repercussions. The British Chamber of Commerce estimates that these tariffs could escalate the cost of exporting UK goods to the U.S. by as much as $4 billion, affecting approximately 40,000 British companies.

The new tariff regime initiated by President Trump has a potential duration of up to 150 days, unless extended by Congress. It is anticipated that existing tariff exemptions for steel, pharmaceuticals, and automobiles, previously agreed upon by the UK and the U.S., will remain in effect, thereby preserving a preferential standing for the UK in these crucial sectors.

A spokesperson for the UK government stated, “We expect our specific trade position with the U.S. to continue under any scenario,” as reported by Bloomberg.

However, Crawford Falconer, a former senior trade negotiator for the UK, cautioned that businesses exporting other products to the U.S. will now encounter higher tariffs, mirroring those previously faced by the European Union. He suggested that Australia and the UK appear to have absorbed the most significant negative impact, with a desire for clarification and potential reduction, noting that Australia was also subject to the 10% rate before a high court ruling.