US Tariffs Set to Continue

The US is moving to make its broad 10% tariff on most imports more permanent, signalling a continuation of trade policy uncertainty for UK exporters.

According to the British Chambers of Commerce update, this shift comes as temporary measures near expiry, with the US now adopting a more durable tariff framework under Section 301 of the Trade Act 1974.

Key Developments

·         The US is seeking to lock in a 10% tariff on most imported goods, replacing temporary arrangements.

·         Early findings suggest the UK may avoid higher headline tariff rates overall, offering some stability.

·         The UK’s competitive advantage has already been eroded in several sectors, reducing its relative position against global competitors.

·         Crucially, the final details (expected in July) will determine the real impact, particularly around costs and market access.

For context, these developments could directly affect the estimated 40,000 UK companies exporting goods to the US, including many SMEs.

What This Means for Businesses

While there may be no immediate increase in tariffs, the risk lies in the “fine print”. Even small changes in tariff structures or product classifications could increase landed costs for US customers, reduce price competitiveness versus EU or global suppliers, create uncertainty when pricing contracts and forecasting margins and disrupt established supply chains and long-term partnerships

Trade Negotiations

There is a strong emphasis on progressing UK–US trade discussions, particularly around the Economic Prosperity Deal and the Technology Prosperity Deal. Successful implementation could, reduce tariff burdens, improve market access and strengthen services and digital trade links. These agreements remain key to restoring longer-term confidence in transatlantic trade.

The continuation of US tariffs reinforces a challenging global trade environment. For international trading businesses, success will depend on staying agile, informed, and proactive in managing risk and identifying new opportunities.

Read the full BCC press release:

British Chambers of Commerce update