Latest US tariffs mean 'no negative change' for British businesses, says government
The US is imposing the charges on Britain and 59 other countries over claims that they have not done enough to enforce bans on goods produced with forced labour.
The United States' latest decision to impose tariffs on the UK over allegations of lax enforcement of forced labour bans would have no negative effect on UK businesses, the government has said.
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At the direction of the US president, Ambassador Jamieson Greer is imposing the charges on Britain and 59 other countries over claims they have not done enough to enforce bans on items produced by forced labour.
However, under the rules, the UK could be eligible for exemptions on products where it would encourage compliance in meeting this commitment.
"There is no negative change to the tariff rate facing UK businesses as a result of this announcement," a government spokesperson said.
"Our agreement with the US remains in place, and today we see an improvement to our trading terms with zero tariffs on whisky and medical technology
"We take forced labour very seriously to ensure that in global supply chains UK businesses are not complicit.
"The US has recognised the steps the UK is taking, which is why there are no additional tariffs for the UK under this announcement."
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The fresh tariffs came just hours before temporary 10% levies, which Britain was already facing, expired.
They were introduced after the Supreme Court overturned Mr Trump’s previous import tax regime in February.
He is now seeking a more durable system using a 1974 trade law.
The US administration says the levies are being slapped on 60 economies “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”.
It added that the action followed investigations by the Office of the United States Trade Representative (USTR), which included public hearings, more than 2,100 public comments, and engagement with trading partners “to remedy these longstanding concerns”.
Mr Greer said: “President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains.
“The United States has had a forced labour import ban for nearly a century, and rigorously enforces it. It’s well past time for our trading partners to do the same.
“Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere.
“I am encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement.”
However, the USTR also said there would be product exemptions, where tariffs would lead to a shortage of raw materials domestically, cause economy-wide disruptions or where items cannot be grown or produced in sufficient quantity or at a reasonable price in the US.
Tariffs are paid by companies in the US which import foreign products and usually move to pass along the cost by charging consumers higher prices.
Americans are already frustrated by the high cost of living, so the administration is taking a risk in rolling out new tariffs ahead of the critical mid-term elections in November.
The UK exports more to the US than to any other single country.
In 2024, UK exports to the US were worth £66 billion, 17% of all UK goods exports.
The Economic Prosperity Deal agreed between the two countries last year aimed to mitigate the impact of US tariffs on UK industries and deepen commercial ties.