Trump’s latest tariffs put UK at disadvantage to EU, say experts

While overall levy for UK is unchanged, sectors not covered by Turnberry deal face tougher competition Business live – latest updates 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. In the levies, announced late on Thursday and said to be aimed against countries that engage in forced labour, the EU’s previous 15% near blanket tariff is reduced to 10%, the same level as the tariff deal struck by Keir Starmer and Peter Mandelson last year.

The UK welcomed the deal, announced by the US trade representative, Jamieson Greer, and said there was “no change” to the headline 10% tariff or preferential rates in the car, pharmaceutical and aerospace sectors concluded in the UK’s economic prosperity deal (EPD). The new measures for the EU will replace the tariff in the Turnberry deal concluded at the US president’s Scottish golf course last year. An EU spokesperson said the deal “establishes an all-inclusive tariff rate of 10% for the EU, and reintroduces the additional tariff exemptions for the EU, such as cork and diamonds, on top of those on aircrafts and parts, generic medicines, and active ingredients”.

The Turnberry deal meant no tariffs could be added to the 15% blanket levy. The reduction to 10% effectively puts the EU at an advantage for sectors not specified in Starmer’s deal, such as bikes, clothing, chemicals, beverages or gifts. However, in a fillip for Andy Burnham, a deal cutting US tariffs on Scottish whisky to zero was announced on Friday, giving the UK an advantage over Irish and French spirits rivals, which attract a 10% duty.

The first shipment of tariff-free scotch whisky will depart the UK in the next 48 hours, the government said, “in a huge boost to one of Britain’s biggest and most iconic exports”. The new business secretary, Jonathan Reynolds, said: “This historic shipment demonstrates why trade deals with our largest economic partners matter. Douglas Alexander, the Scotland secretary, said it was “a very welcome day” for the Scottish spirits sector, “with a shipment from Aberdeenshire being among the first to enter the US without tariffs””