BCC press release: Fresh uncertainty as new 10 per cent tariff introduced

Update February 24th 2026

Reacting to a new 10 per cent US Tariff being introduced overnight instead of the expected 15 per cent, William Bain, Head of Trade Policy at the BCC, said: 

 
“While a new 10 per cent tariff rate, instead of the threatened 15 per cent, will provide some relief it shows how difficult it is for businesses to plan ahead.  
 
“It is far from clear what will happen next, and whether a higher tariff rate is still on the way. Despite the immediate reprieve, there is fresh uncertainty for UK firms exporting goods to the US.  
 
“This makes it very difficult for firms to understand the prices and margins they will be able to secure for their goods, currently under production, for export in several months’ time. Inevitably this will have an impact on their sales and hit the economy. 
 
“The BCC has provided government with a six-point plan to guard against the worst economic outcomes from the new tariffs and potential further hikes.  
 
“This includes continued negotiation with the US government, engagement with the US Congress, an uplift in UK Export Finance capacity and reviewing the UK’s Global Tariffs. 
 
“The risk of further tariff pain to come is still real and the government must do everything it can to prepare for the worst.” 

 
What has happened overnight? 

 
As of 0501 GMT this morning (Tuesday 24 February), new US tariff arrangements under section 122 of the Trade Act 1974 came into effect for the next 150 days. These affect goods leaving UK ports bound for the US, which are not covered by the UK’s Economic Prosperity Deal.  
 
A rate of 10% will apply on top of the US’ most favoured nation duties for individual products. The uplift to 15% as announced on Saturday has yet to be implemented by President Trump, but the risk of this tariff still remains and could be introduced at any time. 
 
This would add a further 5% hike in duties for applicable UK goods if it is applied.  
 
The new 10% tariffs expire on 24 July unless renewed by an Act of Congress.  
 
The BCC has put a six-point plan to Government to guard against risks to UK exporters of the new tariff system and to support firms should the uplift to 15% US tariffs be implemented soon. 

Update February 21st 2026: new tariff rate a further blow to business

Reacting to the decision by the US President to raise his new tariffs under section 122 of the Trade Act 1974 to 15 per cent, 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. This will raise the tariff cost on UK exports to the US by between £2bn and £3bn.

“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 one ray of light in this new scenario is that this 15 per cent tariff will need to be approved by Congress after 150 days. It is now vital that the government and business continue dialogue with their US counterparts to retain the UK’s competitive advantage and reduce tariffs as far as possible.”  

February 20th 2026 - Supreme Court tariff decision adds to uncertainty

Reacting to the decision by the US Supreme Court to rule against President Trump’s reciprocal tariffs, William Bain, Head of Trade Policy at the BCC, said: 

“While this decision gives clarity on the President’s executive powers to raise tariffs it does little to clear the murky waters for business.  

“This finding relates to the tariffs the President introduced using a 1977 law - the International Emergency Economic Powers Act (IEEPA).  

“These include many of the so-called reciprocal tariffs that were introduced as part of the President’s ‘Liberation Day’.  

“Different legislation has been used for other US tariffs, such as for steel and aluminium, and the President also has other options at his disposal to retain his current regime. 

“Indeed, if he wants to, he could use the 1974 Trade Act to impose even higher tariffs than the additional 10% levies that the UK and Australia have already been affected byin many goods sectors. 

“The court’s decision also raises questions on how US importers can reclaim levies already paid and whether UK exporters can also receive a share of any rebate depending on commercial trading terms. 

“For the UK, the priority remains bringing tariffs down wherever possible. It’s important the UK government continues to negotiate on issues like steel and aluminium tariffs and reduces the scope of other possible duties. 

“We have recently agreed a good deal on pharmaceuticals, and we should focus on using the Economic Prosperity Deal to ensure the UK gets the preferential treatment outlined there. 

“Any competitive advantage that we can secure is likely to help boost our exports to the single country, globally, we do most trade with.” 

The full Supreme Court ruling can be found here.