Trump's new 15% tariff plan 'will hit UK exporters and dent global growth'

"In a social media post on Saturday, Trump said he was "effective immediately" raising the existing 10 per cent worldwide tariff on countries to the "fully allowed" 15 per cent level. The announcement followed a ruling by the US Supreme Court that the president had exceeded his authority by using emergency powers to impose tariffs on dozens of trading partners, including the UK."

"The revised measure, introduced under alternative legislation, would increase tariffs on many British goods by a further 5 percentage points unless covered by existing exemptions. The British Chambers of Commerce (BCC) said the change would affect around 40,000 UK firms exporting to the US. William Bain, the BCC's head of trade policy, said: "We had feared that the president's plan B response could be worse for British businesses, and so it is proving. An extra 5 per cent increase on a wide range of UK exports will be bad for trade, bad for US consumers and weaken global growth.""

"The UK government is engaged in high-level talks with Washington in an effort to preserve preferential arrangements under the UK-US Economic Prosperity Deal (EPD), announced in May last year by Trump and Keir Starmer. Bridget Phillipson acknowledged the uncertainty facing exporters but insisted the UK expected its preferential trading arrangements to continue. "We want the best possible deal for British businesses," she said. The new 15 per cent levy represents the maximum allowed under Section 122 of the US Trade Act of 1974 and will apply for up to 150 days."

President Donald Trump raised the US tariff on countries from 10% to 15% effective immediately, invoking alternative legislation after a Supreme Court ruling limited emergency powers. The change would add about 5 percentage points to many British goods unless exemptions apply. The British Chambers of Commerce said around 40,000 UK exporters would be affected. The BCC warned the increase would harm trade, raise costs for US consumers, and weaken global growth, and called for clarity and stability. The UK government is in high-level talks with Washington to preserve preferential terms under the UK-US Economic Prosperity Deal. The 15% levy is the maximum under Section 122 of the 1974 Trade Act and will apply for up to 150 days.

Read at Business Matters