President Donald Trump announced far-reaching new tariffs on nearly all U.S. trading partners including the U.K. that threaten to dismantle much of the architecture of the global economy and trigger broader trade wars.
Trump said the tariffs were designed to boost domestic manufacturing, saying “our country has been looted, pillaged, raped and plundered” by other nations.
The U.K. has been hit with tariffs of 10 per cent,the European Union was targeted with a 20% rate, Japan with 24%, South Korea with 25% and Taiwan with 32%. Even some tiny territories and uninhabited islands in the Antarctic were hit by tariffs
Dr Jonathan Owens, University of Salford’s operations and supply chain expert, comments:
“In 2024, the UK exported almost £60bn worth of goods to the US, mainly machinery, cars and pharmaceuticals.
“If demand for UK products in the US declines due to extra charges or tariffs, it could put significant pressure on British companies. Importers often face increased costs, which can either reduce their profit margins or result in higher prices for consumers, potentially making UK products less competitive in the US market.
“If UK companies are heavily reliant on the US as a major customer, any sustained drop in sales could lead to financial strain, possibly affecting employment levels in the UK. In this case, businesses would need to pivot and look for alternative markets or adjust their strategies to survive.
“Exploring new markets outside of the US, diversifying product offerings, or finding ways to reduce production costs will be key for UK firms if the tariffs are here to stay. However, setting up new supply chains and national and regional distribution hubs can’t be done overnight, it takes time. In the short term, some job cuts could be a possibility if demand in the US continues to shrink.”
The news has seen global markets fall with the Prime Minister calling for cool heads but sources say that the country is considering some retaliatory rates on goods imported from the US
Starmer told business leaders in Downing Street this morning that the tariffs will ‘clearly’ have an economic impact on the UK.
The Business Secretary Jonathan Reynolds said that talks with America over a trade deal were ongoing adding that the preferred option is a deal – but said the government is reserving the right to take action if an agreement is not secured.
