Wed, 25 Jun 2025

Wed, 25 Jun 2025 UK firms to be protected from cheap imports

The government's plan comes as UK businesses worry about the impact of US President Donald Trump's trade tariffs.
The UK government has announced a new plan aimed at boosting exports and protecting domestic businesses from cheap imports. The plan, set to be unveiled during the British Chambers of Commerce conference in London on Thursday, will focus on removing obstacles for UK businesses selling abroad while bolstering trade defences to avoid undercutting by foreign companies. To achieve this, the government will increase financial backing for exporters and provide help understanding complex trade rules. A key aspect of the plan is defending industries such as steel and cars from cheap imports, which could be diverted to the UK market due to US tariffs making it more expensive to sell in America. The government has acknowledged that some sectors are concerned about the potential influx of cheap imports, particularly Chinese-made electric vehicles and steel. However, the plan aims to address these concerns by providing a stronger defence for domestic businesses. Additionally, the government will focus on boosting the UK's export of services and point to recent successes in signing trade agreements with India and securing better terms with the Trump White House on tariffs. Some industry experts have expressed concerns about the use of "de minimis" rules, which allow low-value packages to enter the country tax-free. They argue that this has led to an unfair advantage for overseas firms and put consumers at risk from products that do not meet UK standards. The trade plan comes after the government's 10-year industrial strategy was unveiled, which includes measures to lower energy costs for businesses. The move is seen as a response to criticism that the government dropped a "tax bombshell" on business last autumn, leading to higher costs and employer National Insurance contributions.
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