The US government’s decision to impose a 10% tariff on British exports will hit several key UK industries including car manufacturing and pharmaceuticals.
Although the tariff facing the UK is lower than that for the EU, it will still have a major impact on the economy and could lead to further disruption to trade as other countries react to US tariffs.
Commenting on the new tariff on UK exports, Subrahmaniam Krishnan-Harihara, Deputy Director of Research at Greater Manchester Chamber of Commerce, said: "The United States is Greater Manchester's largest trading partner and the tariffs announced yesterday are bound to cause anxiety amongst exporting businesses. Tariffs are universally damaging and the measures announced yesterday will affect businesses and consumers both in the United States and countries which export to that country.
"It is noteworthy that the UK has been hit with 10% tariffs, one of the lower rates. These are on top of any existing duties. For goods exported from the UK to the US, this represents an additional £6 billion in costs.
"Importers in the US will undoubtedly pass the costs on and if higher prices contribute to a fall in demand, these will affect exporting businesses. However, businesses should also explore whether there are new opportunities given the tariffs on UK goods is lower than those imposed on other countries. For example, the EU bloc has been hit with 20% and tariffs on many Asian countries are much higher.
"The government must step in with support for businesses, especially SMEs, to enable them to mitigate the fallout. These include export finance support and help in identifying newer markets. The UK and the US have long-established trade and other relationships, and Greater Manchester has been pursuing closer links with the US. Ultimately, this is a long-term process which will require careful negotiation and not hasty retaliation."
Susana Córdoba, Head of International Trade at Greater Manchester Chamber of Commerce, added: "UK and Greater Manchester businesses will face significant challenges due to the direct tariffs imposed by the US, but the impact extends far beyond. Tariffs on key markets such as the EU, China, and other Asian countries will disrupt global supply chains, affecting companies that rely on interconnected trade networks.
"So whilst the 10% imposed on the UK seems to cover specific goods, if you are a company whose manufacturing is taking place in any of the impacted markets, the chances are you may be facing higher costs and trade restrictions ripple across borders, impacting pricing, production, and competitiveness.
"We urge UK companies to take action and assess how their goods will be impacted across supply chains, understanding rules of origin and putting in place a duty management plan that helps you navigate one of the most challenging periods in trade history."
Have Your Say
The Chamber's International Trade team is keen to hear from businesses impacted by tariffs and help you to assess what the impact will be on your business, so please email us at international@gmchamber.co.uk.
You can also help the team to understand how you think your business may be impacted by taking part in this poll.