Trump tariffs add 10% for imports from UK but avoid 20% levied on EU
3 Apr 2025
Manufacturers and government have reacted with concern to the imposition of a 10% tariff on imports of UK goods announced by American president Donald Trump.
The news comes after the imposition of 25% aluminium and steel import tariffs, raising further concerns about the likely effect on economic growth over the next year.
There was relief however that the UK has had the 10% ‘baseline’ tariff imposed on it, in contrast to the 20% shouldered by the European Union.
In a statement, UK Steel commented that it was essential that ongoing government efforts to strike a trade deal with America are successful, noting: “The UK Government must continue its efforts to strike a deal with the US, but we recognise that this requires willingness from both sides”.
Speaking on the BBC Today programme, business and trade secretary appeared to indicate that talks underway were proceeding favourably.
However, UK Steel’s statement urged prime minister Keir Starmer to take further action on the domestic economic front.
“Domestic trade policy on the other hand is entirely within the Government’s gift and it can immediately take action to strengthen our trade defences,” said the statement.
“We cannot afford to wait any longer as our exports are being damaged, and our market is being undercut by rising imports. UK Steel has warned that the steel crisis has been deepening for some time and bold, decisive and significant interventions are needed now.”
Meanwhile MD at cutting tool manufacturer Exactaform Jamie White warned that the effects of the tariffs would be felt all along supply chains as material costs and supply chain efficiency were critical for sectors relying on precision-machined components.
“We are positioned right at the start of the supply chain, meaning we’ll see these changes take effect in real time,” he said.
“If tariffs result in increased material costs, we anticipate a ripple effect on machining strategies, tooling choices, and overall production efficiency across the industry.”
Total trade in goods and services for both exports and imports between the UK and United States was £294.1 billion in the four quarters to the end of Q3 2024, according to government statistics.
This represented a decrease of 2.3% or £6.8 billion in current prices from the four quarters to the end of Q3 2023.
Of this £294.1 billion, total UK exports to the USA amounted to £182.6 billion in the period. This was a year-on year decrease of 0.5% or £889 million in current prices, compared to the four quarters to the end of Q3 2023.
Total UK imports from United States amounted to £111.5 billion in the four quarters to the end of Q3 2024 – a decrease of 5.1% or £5.9 billion in current prices, compared to the four quarters to the end of Q3 2023.
Pic:Eilis Garvey
