UK doesn't expect US tariffs ruling to affect most trade, says Wells

UK doesn't expect US tariffs ruling to affect most trade, says Wells

UK Maintains Confidence in U.S. Trade Relations Amid Tariff Uncertainty

The United Kingdom has stated it expects its "privileged trading position" with the United States to remain intact despite recent upheaval in U.S. tariff policy. President Donald Trump's announcement of a new 15% global tariff on imports—replacing the recently invalidated IEEPA-based levies—has raised concerns among European and British officials, though the UK's baseline tariff rate under its trade deal was initially set at 10%.

While the U.S. Supreme Court's ruling against Trump's prior tariff framework created legal ambiguity, the UK government emphasized its commitment to working with Washington to clarify how the new policy will affect bilateral trade. A spokesperson noted that most UK exports to the U.S. remain subject to the 10% rate agreed under last year's trade deal, with exemptions for key sectors like pharmaceuticals, steel, and automobiles according to trade sources.

However, analysis from Swiss trade watchdog Global Trade Alert highlights that the UK faces a 2.1 percentage point increase in its trade-weighted average tariff rate under the new policy, compared to a 0.8-point rise for the EU. This has prompted concerns among British businesses, particularly those exporting goods such as Scotch whisky and consumer products, which now face higher duties equivalent to the previous EU rate.

Despite these challenges, UK officials have sought to downplay long-term risks. Cabinet minister Bridget Phillipson stated that "we are having conversations at the highest levels" to ensure the UK's national interests are prioritized. The British Chambers of Commerce estimates the new tariffs could add up to £3 billion in costs for exporters, though the government maintains that the existing exemptions will mitigate some impacts.

U.S. Trade Representative Jamieson Greer has assured partners that trade deals "will be good deals" and that the administration expects counterparts to "stand by them." However, European leaders and trade experts have called for legal clarity, with the European Parliament considering suspending implementation of the U.S.-EU trade deal until uncertainties are resolved.

The UK's stance reflects a balancing act between diplomatic engagement and economic pragmatism, as businesses navigate a rapidly shifting tariff landscape. While the government remains optimistic about preserving its trade advantages, ongoing negotiations and legal assessments will likely shape the final outcome.