Politics
What Trump’s new tariffs mean for you and the UK economy
- The Supreme Court defeated previous attempts by the administration to impose aggressive trade policies in February, but Mr Trump was still able to introduce temporary tariffs for 150 days.
- The fresh tariffs have been imposed over claims the countries have not done enough to enforce bans on items produced by forced labour.
- This move from the US president could enable him to create a more durable framework of tariffs, imposed on the basis of a 1974 trade law.
- His administration says the levies have been applied on these countries “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”
Certain key exemptions have been made for the UK in the new sweeping measures Certain key exemptions have been made for the UK in the new sweeping measures Donald Trump has imposed new tariffs on 60 countries including the UK to replace the 10 per cent global levy that was set to expire on Friday. The Supreme Court defeated previous attempts by the administration to impose aggressive trade policies in February, but Mr Trump was still able to introduce temporary tariffs for 150 days. The fresh tariffs have been imposed over claims the countries have not done enough to enforce bans on items produced by forced labour.
This move from the US president could enable him to create a more durable framework of tariffs, imposed on the basis of a 1974 trade law. His administration says the levies have been applied on these countries “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”. It claims this is based on investigations by the Office of the United States Trade Representative.
The UK exports more to the US than to any other single country. UK exports to the US were worth £66 billion in 2024, which was 17 per cent of all UK goods exports. As before, the new tariff regime will impose a 10 per cent duty on goods imported from the UK to the US.
This is paid for by the importer on the US side, but has a major knock-on effect on UK businesses as stateside demand drops. But there will also be new product exemptions under the changes, which means they will work differently for some sectors than before. Here’s what the new tariffs could mean for the UK: Get a free fractional share worth up to £100. Capital at risk.
Get a free fractional share worth up to £100. Capital at risk. Crucially, the US has carved out exemptions for whisky and medical products under the new tariff scheme. Whisky producers have welcomed the change, with tariffs majorly hitting their US sales.
The Scotch Whisky Association (SWA) calculated last year the industry was losing approximately £4 million per week due to tariffs. Ian Duddy, international director at the Scotch Whisky Association, said: “The return of tariff-free trade for Scotch whisky in the US is welcome news for businesses on both sides of the Atlantic. “As Scotch whisky’s most valuable global market, worth £933 million in 2025, the removal of tariffs provides greater confidence to invest, grow exports, and support jobs and communities across Scotland and the US.
The current 10 per cent tariff will also be removed from medical equipment. With UK medical device exports to the US totalling over £115 million annually, a 10 per cent tax added an estimated £12 million in supply chain costs. Medicines were already exempt in the earlier round of tariffs. As a result, UK consumers may benefit from both of these sectors reducing the prices of products over time, or at least increasing them less slowly, as a key pressure on them is removed.””
Source: Independent World