US Tariffs Hit UK Businesses

Reacting to the introduction of 25 percent tariffs on exports of UK steel and aluminium to the United States, William Bain, BCC Head of Trade Policy, said: 

“This is a difficult day for trans-Atlantic trade and plunges businesses, in both the US and UK, into a new age of uncertainty. 

“Products made with UK steel and aluminium play an important part in many supply chains in the US. Both sides will now be facing up to negotiations on how the burden of these new tariffs will affect businesses in both countries. 

“Despite this action, UK firms will want to keep trading with their customers and clients in the US and vice versa. Our commercial, investment and trading relationships remain strong. 

“Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth. More tariffs are also on the agenda for the start of next month which will add fresh uncertainty into the mix. 

“BCC research shows that 63% of our manufacturing exporters were concerned about the impact of tariffs before their introduction. 

“But today’s setback does not mean we have reached the end of the road in terms of negotiations. Tariffs can be lifted at any time. 

“Businesses will be looking to the UK government to continue dialogue, with the US, to resolve this situation and restore certainty for firms, which has been badly lacking over recent weeks. 

“Against this background, a series of tit-for-tat tariffs could easily spiral into an all-out trade war and would do the UK little benefit. 

“We must keep talks alive and retaliatory tariffs should only be used as a means of last resort. 

“If talks succeed, it would be a win-win, bringing welcome stability and pro-growth economic conditions for both sides.” 

The UK’s business and trade secretary, Jonathan Reynolds, responded to Trump’s implementation of steel and aluminium tariffs today to say that it was a “disappointing” decision.

Noting that the government will “keep all options on the table” around a formal response, he said engagement with the US would continue as “we remain resolute in our support for UK industry”.

“This government is working with affected companies today, and I back industry's application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers.”

The director of industry body UK Steel, Gareth Stace, said that Trump needed to remember that “we’re his friend, not his foe”, adding that the tariffs “couldn’t come at a worse time” as the UK industry struggles with a rapid rise in steel imports to the country.