BCC press release: US tariffs explained

Fiona Parsons
21 January 2026

January 21st, 2026 update

 

William Bain, BCC Head of Trade Policy, has written a guide explaining the planned US tariffs and their potential impact on UK exporters to the US.

David Bharier, Head of Research, British Chambers of Commerce, has written a blog based on new polling by BCC of 342 UK businesses. Headline: Tariff fatigue has set in among UK businesses.

 

January 20th, 2026 update: Impact of US tariff threat revealed

 

  • A third of surveyed businesses (33%) say they will be exposed to the latest US tariff threat 

  • Of those exposed to the tariff threat, 33% of businesses are already taking action 

  • 55% of those exposed say they see risk, but have yet to take any action 

  • A third of UK firms exposed to the threat of new US tariffs are already taking action, according to the first major business survey carried out since Saturday’s announcement.  

 

Using its unique access to companies across the UK, the British Chambers of Commerce award-winning Insights Unit carried out a snap survey of nearly 350 businesses, over a 24-hour period between Monday and Tuesday lunchtime this week (19-20 Jan).  

The research shows that a third of business (33%) say they are exposed to the threat of new tariffs. Meanwhile, 21% of firms say it is too early to judge if they will be exposed, and 46% of respondents say they won’t be.  

Among the firms saying they’ll be exposed by the tariffs, the majority, 55%, say they recognise risk but have yet to change their plans. However, 33% are already acting following Saturday night’s announcement.  

Of firms exposed, 17% are carrying out contingency planning and 12% are already planning a strategic shift to reduce exposure to the United States. While, 4% of exposed businesses are carrying out active adjustments, changing aspects of their operations. A further 12% of firms say they’ll be exposed but expect no change because they think the tariffs won’t be implemented.  

Based on the current trading figures with the United States, if the tariffs come into place, UK businesses will £6bn hit at the end of January, rising to £15bn in June. 

 

William Bain, Head of Trade Policy at the British Chambers of Commerce said 

“The threat of a new tariff bombshell from the United States is bad news for UK businesses, consumers and the wider economy.  

“Our data shows some firms are already taking action following Saturday’s statement from the US Administration.  

“If the tariffs are implemented the impact on British businesses is clear. It’ll mean lost orders, higher costs and lower margins for firms.  

“Trade delivers economic growth, and the way forward for successful transatlantic commerce is through reducing tariffs, not adding more costs. 

“We welcome the Government’s clear but calm response. We were pleased to hear the Prime Minister focus on the SME impact, during his press conference on Monday.  

“Ministers must look to support UK businesses through these turbulent times, while prioritising the full implementation of Economic Prosperity Deal.” 

 

January 19th, 2026 update

BCC Supports Cool-headed Tariff Threat Response 

 

The BCC met with Trade Minister, Chris Bryant, this morning to offer its support for the calm, level-headed response from the Prime Minister to the latest US tariff threat. 

BCC Director General, Shevaun Haviland CBE, and Director of International Trade, Steve Lynch MBE, had a previously scheduled meeting with the Minister to discuss a range of trade issues. 

But they took the opportunity to talk about the developing threat of fresh US tariffs for UK businesses of 10% at the end of January with an additional 15% in June. 

Speaking afterwards Shevaun said: 

“Throughout tariff developments, the government has kept a cool head and continued to negotiate. That’s seen us establish a competitive advantage over many other countries in the US market for goods like steel and pharmaceuticals. 

“We are still in the foothills when it comes to these new tariff proposals from the President and there is some way to go before we will have final clarity on them.  

“But should the worst-case scenario come to pass, then the impact would be significant. A £6bn hit at the end of January, rising to £15bn in June. 

“If that happens, orders will drop, prices will rise, and global economic demand will be weaker as a result. That would be a lose-lose situation for everyone.  

“The UK is not without influence, our bilateral trade with the US is worth £300bn, we have £500bn invested in its economy and it has £700bn tied up in ours. There is a high-level of co-dependency.  

“The government should keep everything on the table during talks. Many firms, especially SMEs, will now be facing difficult decisions and we urge it to consider its contingency plans for support should the worst happen.  

“The existing 10% tariff means that many businesses have already negotiated with their US customers on managing the impact and we would suggest they continue this dialogue.  

“Last year, enhanced credit and financial support was offered through UK Export Finance and the British Business Bank to cushion the effect of tariffs, and this is another option.” 

New Tariff Threat – BCC assessment of the current situation 

  • The US President has threatened to introduce a new 10% tariff for UK imports into the US from February 1. 
  • If the issue of Greenland’s future is not resolved to his satisfaction by June 1, he has said he would raise this tariff to 25%. 
  • No executive order or proclamation has yet been issued by the US government to clarify what legislation would be used to implement these new tariffs. 
  • It could be as late as January 31 before this will be known. 
  • If the legislation used is the same as for the existing reciprocal tariffs, it would be the International Emergency Economic Powers Act 1977 – IEEPA. 
  • If that is the case, then the tariffs would stack upon the existing 10% rate applicable to UK exports subject to reciprocal levies.  
  • To date, there has not been a case where IEEPA tariffs have been stacked on top of section 232 tariffs (implemented under the US Trade Expansion Act 1962).   
  • This is the legislation which has been used for steel, aluminium, automotives pharmaceuticals and semiconductors. 
  • In this scenario, products like steel, pharmaceuticals or semiconductors subject to s232 tariffs could see these remain at present levels or they could be revised in line with Presidential authority over existing s232 tariffs.  
  • For other product lines already subject to reciprocal tariffs of 10%, such as clothing and whisky, these new proposals will most likely stack on top of the existing tariff.  
  • This means the IEEPA rate for the UK would become 20% from 1 Feb, and 35% from 1 June.   


January 17th,2026 update

Responding to news that the US plans to introduce fresh 10% tariffs on UK goods, from next month, William Bain, Head of Trade Policy at the British Chambers of Commerce said:
 
"New tariffs on goods exported to the US will be more bad news for UK exporters, already struggling with the tariffs levied last year.  
 
“We know trade is one way to boost the economy and the success of transatlantic trade depends on reducing, not raising, tariffs.  
 
“The Government must prioritise the implementation of the Economic Prosperity Deal and negotiate calmly to remove the threat of these new tariffs.”