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Tariffs

UK Businesses Urge Government to Secure Deal on US Tariffs

Strategic Insights

— 1 min read

British manufacturers are urging the government to swiftly secure a deal to eliminate metals tariffs, which have left hundreds of British goods in limbo as they become subject to new American tariffs over the weekend. JCB chief executive Graeme Macdonald has called on the UK Government to get a "deal done quickly" with the US on steel, highlighting the "chaos" at US ports as British goods are held up due to the new tariffs. The UK is still the only country to have avoided 50% steel and aluminium tariffs thanks to its trade deal with the US, but manufacturers are hoping to reduce the tariff rate to 0%.

Key Takeaways:

  • Over 400 categories of goods containing steel and aluminium have become subject to US tariffs over the weekend, including those made in the UK.
  • The tariffs cover a wide range of products, including metal parts, garden furniture, children's cribs, shampoos, and other products with aluminium packaging.
  • British manufacturers, including JCB, are urging the UK Government to close a deal aimed at eliminating the metals tariffs.
  • The UK and US negotiators failed to finalize a deal when the trade agreement between the two countries was signed in May.
  • 25% tariff rate on British goods will increase to 50% if no deal is reached.
  • JCB chief executive Graeme Macdonald has called for a "deal done quickly" and warned that the new tariffs are "very damaging to British industry".
  • The UK Government has committed to working with the US to implement the deal in industry's best interests.

Statistics:

  • Over 400 categories of goods containing steel and aluminium have become subject to US tariffs.
  • 25% tariff rate on British goods will increase to 50% if no deal is reached.
  • The tariffs cover a wide range of products, including metal parts (80 submissions), garden furniture (78 submissions), children's cribs (62 submissions), shampoos (51 submissions), and other products with aluminium packaging.
  • The UK and US trade deal was signed in May.
  • Donald Trump raised other countries' steel and aluminium tariffs to 50% earlier this year.

Sources:

  • Sunday Times
  • PA Political Correspondent David Lynch

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