Wed, 12 Mar 2025

Wed, 12 Mar 2025 How will the latest Trump tariffs affect the UK?

How much will the UK be hit by US tariffs and what happens next?

* The UK has been hit with 25% steel and aluminium tariffs by President Trump, despite hopes from Prime Minister Keir Starmer that it would be exempt.
* The total annual value of UK exports affected is around £2.7bn, which represents just under 5% of total UK exports to the US in 2024 (£58bn).
* The UK hopes to conclude a free trade deal with the Trump administration, but no timeline has been set for this.
* The US has threatened to impose reciprocal tariffs on all its trading partners, including the UK, from next month. These could be based on countries' Value Added Tax (VAT) rates.
* The UK has a 20% standard VAT rate, which could mean it being hit by substantial reciprocal tariffs from the US.
* The EU is already planning to impose tariffs on £22bn worth of goods imported from America, including Bourbon whiskey and Harley-Davidson motorcycles.
* If the US imposes unfair and punitive tariffs, the UK government may face pressure to retaliate in a similar way to the EU.
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