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Fri, 24 Jul 2026

Fri, 24 Jul 2026 Faisal Islam: The UK's Trump trade deal no longer looks world-beating

While the US tariffs imposed on the UK are effectively unchanged, other countries now have a better deal.

* President Trump has introduced a new wave of tariffs on dozens of countries, including some key allies, citing forced labor as a reason.
* The UK's trade regime with the US remains largely unchanged, but EU exporters have secured better treatment due to passing legislation mirroring the US ban on forced labor goods.
* The EU's effective tariff rate may be lower than the UK's, which could lead to increased competition for British exporters.
* The government has struck deals on specific goods such as medicines and whisky, but the overall trade-weighted effective tariff rate for the EU could end up being lower.
* The use of forced labor in supply chains is not necessarily an accusation against individual countries, but rather a requirement for them to pass legislation mirroring the US ban.
* The UK has welcomed imports of Chinese cars and is exploring a services trade deal with China, despite previously expressing opposition to state-imposed forced labor.
* There could be pressure on the government to legislate for a formal ban on forced labor products, but it may also opt to stick with its existing deals.