What do US Tariffs mean for UK exporters – and where else can you trade?
After weeks of speculation, UK exporters finally have clarity: a blanket 10% tariff will now apply to many goods heading to the United States.
While some businesses may feel relieved to have a clear figure to work with, the broader impact is significant. According to the British Chambers of Commerce (BCC), the new tariffs, including the previously announced 25% duties on steel, aluminium, cars, and other automotives, could affect up to £6 billion worth of UK-US trade and dampen the UK’s wider economic growth.
So, where do UK exporters go from here?
One thing is clear: building long-term trade relationships under unpredictable conditions is a major challenge. Trade wars help no one, and uncertainty around potential UK or EU retaliation only adds to the unease.
But there are opportunities. While businesses can’t control global politics, they can control how they respond. Now is the time to explore markets that offer more certainty, fewer tariffs, and better opportunities for growth.
However, for more immediate information on the new rules and their potential impact, Business West is working with the Department for Business and Trade (DBT), through the BCC, to provide answers to questions that South West businesses may have.
Furthermore, any companies facing imminent financial distress because of these changes should contact DBT via Business West.
We are working with BCC to host a members’ workshop on Wednesday, 9th April 2025, to provide an opportunity for direct questions to BCC and, hopefully, the Department of Business and Trade. Please register at the link below if this would be of interest to you and your business:
https://us02web.zoom.us/meeting/register/tzNl0TpYQSeOulXwELZaNA
More free trade opportunities than ever
Thanks to the UK’s growing number of Free Trade Agreements (FTAs), businesses have more options than ever before. Most recently, the UK joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), opening the door to 11 markets - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam – with a combined consumer base of over 500 million.
FTAs create significant advantages, including the ability to claim preferential origin – this means your goods meet specific criteria proving they originate from the UK. In turn, this reduces or eliminates tariffs, helping exporters stay competitive and increase their profit margins.
While the 10% tariff on UK goods exported to the US will be challenging, overnight, it gives UK firms a 10% pricing advantage over EU competitors. It’s also worth remembering that many of our customers trade on the strength of their brand, product quality, and reputation rather than purely on price. As always, the most important thing is to continue communicating with your overseas customers.
Where else could exporters look?
At Business West, our International Trade Services team helps UK exporters identify and make the most of FTAs through our Free Trade Agreement Utilisation Service. Here are just a few real-world examples of how businesses are using these opportunities:
- Food and Drink:
One of our customers, a food ingredients manufacturer, is now successfully exporting to Malaysia under the CPTPP, benefiting from preferential rules of origin.
We also support a range of dairy and cheese producers who export to the EU under the EU-UK Trade and Cooperation Agreement (TCA), which allows for zero tariffs on all qualifying goods.
- Alcohol Industry:
Exporters in the wine and spirits sector can look to the CPTPP and other agreements, such as the UK-CARIFORUM Economic Partnership Agreement, which includes markets like Trinidad and Tobago.
- Manufacturing and Engineering:
We work with several manufacturers of machinery, pumps, and tools that export to markets such as Switzerland (UK-Switzerland agreement), Korea (UK-Korea FTA), and Jordan (UK-Jordan Association Agreement).
Expert support
Catherine Stephens, Head of International Trade Services at Business West, commented:
“We understand that traders exporting to the US may be concerned and frustrated by these tariffs, especially given the wider economic pressures they face. But there are many more global markets to explore, and UK businesses have more Free Trade Agreements than ever before. That’s where my team can help.”