Sun, 22 Feb 2026

Sun, 22 Feb 2026 The uncertainties facing businesses and consumers after Trump's tariff changes

Businesses say questions remain after US President Donald Trump announced he will impose global tariffs of 15%.

* The UK and Australia may have to pay higher tariffs on goods exported to the US due to Trump's latest announcement.
* Countries that previously negotiated 10% tariff deals with the US, including the UK and Australia, may face the Section 122 global tariff instead of their initial agreement.
* It is unclear whether the US expects countries to pay higher tariffs while retaining parts of existing deals.
* The new 15% tariff rate could increase tariff costs on UK goods exported to the US by £2-3bn ($2.7-4bn).
* Around 40,000 UK companies export to the US, and a 5% increase in levies is paid either by the exporters or their customers in the US.
* The added costs are generally borne by end users and consumers, contributing to higher prices and inflationary pressure.
* Hundreds of firms have filed lawsuits to try and get refunds for the roughly $130bn (£96bn) in levies that have already been paid since April last year.
* It is unclear whether the US will pay large-scale refunds, with some businesses fearing Trump could use other tariff tools to avoid paying them.
* Trump has used Section 232 of the Trade Expansion Act of 1962 to introduce industry-specific tariffs on sectors including vehicles, steel and aluminium.
* Additional sector-specific tariffs under Section 232 may gain prominence in 2026.
* US consumers have already been paying a substantial portion of the higher tariffs introduced last year, with estimates suggesting between 31% and 63% being passed through to consumers.
* The increased uncertainty will ultimately hurt US consumers when it comes to product choice as exporters look to send more products elsewhere.
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