The US has unveiled a revamped tariff regime, which could imperil the competitiveness of certain UK businesses, despite the headline 10% rate remaining intact. The EU's reduced tariff – now aligned with the UK's Economic Prosperity Deal (EPD) – will apply to a broader range of goods, including clothing, chemicals, and gifts, where the UK lacks specific exemptions.
Some British firms may struggle to compete against their EU counterparts due to the revised US tariffs. For instance, a knitted jumper from the UK could face a 22.5% levy when entering the US market (12.5% specific tariff plus an additional 10% EPD tariff), whereas its EU equivalent would be subject to a 10% all-inclusive rate.
William Bain, Trade Policy Director at the British Chambers of Commerce, acknowledged that certain sectors had lost their comparative advantage: "There is a clear distinction between how the UK has been treated and how the EU has been treated. This disparity is undeniable."
The GMB trade union echoed these concerns, with National Secretary Charlotte Brumpton-Childs branding the new tariffs "ill-judged" and potentially catastrophic for businesses. She argued that the development undermines the special relationship between the UK and US, as the EU now enjoys a more favourable trading position.
However, some parts of the UK may benefit from a separate announcement expected later today, which is set to cut US tariffs on Scottish whisky to zero. This move could give Scottish distillers a significant advantage over Irish and French spirits, currently subject to a 10% duty. The UK Government maintained that there was "no negative change" to the tariff rate facing UK businesses overall, highlighting the existing agreement and expected improvements in trading terms for whisky and medical technology.