- Donald Trump’s latest round of tariffs has put UK businesses at a disadvantage against the EU, even though the overall tariff for British goods has not changed, experts have said.
- The EU's previous 15% near blanket tariff is reduced to 10%, which gives it a competitive edge over the UK in several sectors.
- Experts have noted that the overall trade-weighted effective tariff rate for the EU (8.5%) could end up lower than the UK's (6.8%).
- William Bain from the British Chambers of Commerce highlighted the competitive advantage for EU exporters into the US in some sectors.
- Charlotte Brumpton-Childs, the GMB national secretary, stated that the EU now has a better trading relationship with the US than the UK, undermining the so-called 'special relationship'.
- The EU has secured better treatment because it has passed a ban on forced labour goods, which the UK has not.
- Faisal Islam noted that the UK trade deal no longer looks world-beating in light of these developments.
- In a recent deal, US tariffs on Scottish whisky were cut to zero, giving the UK an advantage over Irish and French spirits rivals, which attract a 10% duty.
Experts warn that Donald Trump's latest tariffs disadvantage UK businesses compared to the EU, which has secured better terms, including a reduction in tariffs from 15% to 10%.3
The British Chambers of Commerce trade expert William Bain noted, “Clearly there is a difference between how the UK has been treated today and how the EU has been treated today. And that is undeniable.”4
The EU's new tariff structure allows for a competitive edge in sectors not covered by the UK’s trade deal, such as clothing and chemicals. For instance, a British knitted jumper faces a total tariff of 22.5%, while an EU jumper can enter the US market at just 10%.
The GMB trade union criticized the tariffs as “ill-judged, potentially catastrophic for business and likely to utterly fail in their stated aim.”
Additionally, while the UK has secured a deal to cut US tariffs on Scottish whisky to zero, giving it an advantage over Irish and French spirits, the overall trade landscape has shifted unfavorably for UK exporters.
The overall trade-weighted effective tariff rate for the EU could end up at 8.5%, compared to the UK's 6.8%, further complicating the UK's trade ambitions post-Brexit.
“The EU's previous 15% near-blanket tariff was reduced to 10%, giving it an advantage on sectors like bikes and clothing not covered in Starmer's deal. A separate deal cut US tariffs on Scottish whisky to zero, giving UK an edge over Irish and French spirits rivals.”
The Guardian
