The Latest Twist in Tariff Drama

As the saga of Trump’s trade tariffs unfolds, many are left wondering how a recent court ruling could impact the UK's trade deal with the US.

Not Much Change After All

Surprisingly, the court's decision doesn't alter the tariffs on cars, which represent a major share of UK exports to the US, or the tariffs on steel and aluminium—same as what other countries face.

Current Tariff Rates Still Stand

Currently, UK car exports endure a hefty 27.5% tariff, while steel and aluminium are subjected to 25%. This recent ruling has not changed these figures, leaving British exporters in a tight spot.

A Long Road to Reduced Tariffs

Although a deal is in place to lower car tariffs to 10% and eliminate steel and aluminium tariffs completely, it hasn’t been implemented yet. Jaguar Land Rover expressed frustration over the financial strain from the existing tariffs, countering industry claims that they could deplete US inventories before feeling their impact.

Government Pushing for Quick Implementation

The UK government is racing to finalize the trade deal, with Trade Secretary Jonathan Reynolds set to advocate for swift implementation during an upcoming OECD meeting in Paris.

What’s Next for Exporters?

While the court ruling halts Trump's blanket 10% tariffs on other UK goods like salmon and whisky, the future remains uncertain, as the White House plans to appeal the decision. There are also alternative routes through which Trump could impose tariffs, reigniting fears among exporters.

Doubts Loom Over UK’s Trade Prospects

While the UK heralded its trade deal with the US, the practicality of its benefits is in jeopardy. If the President is constrained by legal or legislative hurdles from slapping hefty tariffs on others, questions arise about how much the UK will truly gain.

Unpredictable Terrain for Businesses

Perhaps the most concerning impact is the heightened unpredictability in international trade, leaving businesses uncertain about planning and investment, which could dampen economic growth.