Trump's 15% global tariffs would deal a blow to UK businesses, warn experts

The US President initially said he would impose a 10% levy after the Supreme Court struck down his previous import taxes on Friday.

But in a post on Truth Social on Saturday, he said he would be increasing this to the higher rate “effective immediately”.

Britain’s biggest business organisation swiftly expressed dismay at the announcement and urged the Government to continue dialogue with US counterparts to keep the UK’s competitive advantage.

“We had feared that the President’s plan B response could be worse for British businesses, and so it is proving,” William Bain, head of trade policy at the BCC said.

Read more: Trump says he is raising global trade tariffs to 15% following 'anti-American' Supreme Court ruling

Read more: Starmer should sue Trump over tariff damage, claims Ed Davey

“This means an extra 5% increase in tariffs on a wide range of UK goods exports to the US, except those covered under the Economic Prosperity Deal.

“This will be bad for trade, bad for US consumers and businesses and weaken global economic growth. Businesses on both sides of the Atlantic need a period of clarity and certainty. Higher tariffs are not the way to achieve that.”

Mr Trump signed an executive order on Friday night that enabled him to bypass Congress and impose a 10% tax on imports from around the world, after his “reciprocal tariffs”, introduced under an emergency powers law in April, were overturned by the Supreme Court.

Britain had received the lowest tariff rate of 10%, and a subsequent agreement struck by Prime Minister Sir Keir Starmer and Mr Trump saw further carve-outs for the country’s steel industry and car manufacturers.

Questions remain over the implications for the UK. However, officials are understood to believe the changes will not affect most of Britain’s trade with America, including preferential arrangements on steel, cars and pharmaceuticals.

The UK Government repeated its assertion that it expects Britain’s “privileged trading position with the US” to continue when asked about the announcement of a new 15% rate.

In his post on Saturday, the US President said: “Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court, please let this statement serve to represent that I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been “ripping” the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level.”

A Government spokesperson said: “This is a matter for the US to determine, but we will continue to support UK businesses as further details are announced.

“Under any scenario, we expect our privileged trading position with the US to continue and will work with the administration to understand how the ruling will affect tariffs for the UK and the rest of the world.”

Sir Ed Davey has told LBC the UK Government should sue the US President for the damage caused to the UK by trade tariffs.

The Lib Dem leader said the PM should "change the position he's taken with Donald Trump and stand up to him.

"Frankly, we should sue Donald Trump for the damage he's caused to our country.

"I would let lawyers decide how to do it, but Donald Trump is suing the BBC, so we should sue him for the damage he's done to jobs, to cost of living, to growth; he needs to be held to account."

He added that many businesses in the UK "no longer trust" the US when it comes to exports.

Reform UK’s Treasury spokesman Robert Jenrick has said the party “opposes blanket tariffs very strongly”.

Speaking on Sky, he said: “This is going to be harmful for trade and come at a time when we can ill-afford it, with unemployment rising, factories closing, some of our most strategic industries, like steel and car-making, in a very difficult position because of the energy policy and the tax policy of this Labour Government.”

Asked if he wants Nigel Farage to tell Mr Trump that he is wrong, Mr Jenrick went on: “Yes, absolutely.

“And, look, Keir Starmer has tried his best, but I would bet that Nigel Farage will be better at negotiating with Donald Trump than Keir Starmer has been.”

He added: “If Keir Starmer is willing to swallow his pride and ask for Nigel’s help to try to resolve the situation, then I can assure you that Nigel would want to do that.

“But, more broadly, Reform is not going to be taken for a ride by other countries, whether they are rivals like China or allies like the United States.”