US Trade Tensions Rise: UK Exporters Face New 10% Tariff Under Trump Emergency Economic Powers Act
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US Trade Tensions Rise: UK Exporters Face New 10% Tariff Under Trump Emergency Economic Powers Act
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President Trump invoked the International Emergency Economic Powers Act in response to what he described as the adverse effects of foreign trade imbalances, currency manipulation, and nonreciprocal barriers. While every country now faces at least a 10% baseline tariff, some major trading partners, particularly those with large deficits with the US, were hit with much higher rates—up to 20% for the EU and close to 50% for certain Asian economies. However, in a twist, on April 9, the US paused these harsher rates for 90 days for countries that have not retaliated, though the UK’s 10% rate remains unchanged. The higher tariffs for China have not been lifted.
Analysis from Yale University’s Budget Lab shows that these tariffs have pushed the average US tariff rate to a staggering 28%, the highest since the turn of the last century, and are expected to result in a short-term 3% rise in consumer prices in the US. For UK exporters, the relatively lower rate compared to other markets could offer a competitive edge, particularly where UK goods compete with those from economies facing much stiffer tariffs. The House of Lords Library suggests the UK may even see an uptick in foreign investment as businesses look for a less-tariffed route into the US market.
Yet, uncertainty remains. The ultimate impact will depend on how long these tariffs are in place. While some interpret Trump’s tariffs as a tactic to drive negotiations, others see them as potentially long-term measures to reshape global trade relationships and bring jobs back to the US. Meanwhile, the UK government and British industries are carefully assessing their next moves and engaging with American counterparts to clarify key categories and push for exemptions where possible.
Listeners, we’ll continue to monitor these rapidly evolving developments and keep you updated with the latest tariff news, negotiations, and responses from both sides of the Atlantic. Thanks for tuning in to United Kingdom Tariff News and Tracker. Don’t forget to subscribe for all your essential UK trade updates. This has been a Quiet Please production, for more check out quietplease dot ai.
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