Businesses invited to share views on US tariffs

The UK Government has invited businesses to share their views on how the country should respond to new 10% tariffs imposed on imports into the US, announced by President Donald Trump.

Companies are being asked to share the average value of their trade with the US, the impact of any potential tariffs, and how they would adjust to them.

Business and Trade Secretary Jonathan Reynolds said:?

“The best interests of British business has shaped our approach throughout as we prepare for all scenarios, which is why we are asking them for their views on how these tariffs impact their operations and day-to-day lives.“

The four-week Request for Input launched today and open until Thursday 1 May continues the Government’s engagement with a wide range of UK sectors in response to tariffs, its commitment to working in the national interest and delivering economic stability, and its support of the UK public and businesses. Retaliatory tariffs on US imports into the UK have been described as a last resort.

Key UK sectors expected to be hardest hit by tariffs include the automotive sector, which faces higher tariffs than other industries, as well as pharmaceuticals, and food and drink producers who are major exporters to the US. However, products from the UK face a lower rate of tariffs than many other countries as US imports total around £12 billion more than annual exports back across the Atlantic.

President Trump announced tariffs overnight on 3rd April, imposing a minimum 10% tax on all imports, with products originating in countries that are net exporters to the US, such as the EU bloc, China, Japan, and most South and South East Asian countries facing much higher rates. 25% tariffs have also been imposed on the automotive sector, affecting both imported parts and complete vehicles. Trump has cited barriers to trade affecting the ability of US companies to sell goods overseas as among reasons for tariffs, which he describes as ‘reciprocal’; the White House has highlighted food regulations that block American chicken and beef from being sold in the UK as among such barriers. He also hopes to reduce US reliance on imported goods and strengthen the country’s manufacturing sector.

In response many countries facing higher tariffs have sought to open trade negotiations with the Trump administration ahead of tariffs coming into effect on 7th April. In the US’ northern neighbour, Canada, however, which has faced 25% import tariffs imposed by Trump, leaders from the across the political spectrum have advocated for strengthening trade relationships beyond the Americas, and a grassroots campaign by Canadian shoppers has seen sales of American products drop sharply.

Stock markets around the world have all seen declines following President Trump’s announcements, in particular, markets in Asia. US stock markets also saw their worst single day falls since June 2020 at the close of trading on 3rd April.