Last week President Trump announced a 10% tariff on all UK exports to the US and higher tariffs for other countries.
We know from our own research that UK firms are really concerned about the impact – our survey in February showed that almost two thirds (63%) of manufacturers that export say they will be impacted by US tariffs.
The Government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.
But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on businesses communities across the world.
Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.
So, it is vitally important that the government does not give up on negotiations. Tariffs can be lifted at any time and the US has signalled its willingness to do some form of deal with us.
The UK is not without influence, our bilateral trade with the US is worth £300bn, we have £500bn invested there and it has £700bn tied up in our economy. There is a high-level of co-dependency and we are speaking to businesses across the UK on options for government to consider.
There are no winners in the current scenario, negotiations will take time and will inevitably involve compromise. Any decisions on taxes will need to be taken very carefully, and the government must consider all its fiscal options.
Businesses seeking assistance should contact the Chambers International Trade Department
