US president Donald Trump’s latest tariffs are not set to see further changes for UK firms, but there are fears British exporters could lose out after the EU secured a more favourable trade deal.
The plans have seen America hit 60 countries including the UK with trade tariffs of between 10% and 12.5% over forced labour concerns.
The US trade department said the tariffs are being imposed on countries it claims have not taken action to tackle the importing of goods made with forced labour.
They are being introduced to replace temporary 10% levies as they came to an end on Friday, having been declared illegal by the US supreme court in February.
Expert William Bain, head of trade policy at the British Chambers of Commerce (BCC), said while it would be “business as usual” for most British firms exporting to the US, the UK must continue negotiating with the US over tariffs.
There are worries that the UK could become less competitive as US imports from other countries will be treated differently under the new regime.
The US has also threatened tariffs on imports from the UK and Europe that introduce digital services taxes, with Britain having said it will impose a 2% levy on the revenue of big tech firms.
Mr Bain said: “There will be concerns about the loss of the UK’s competitive advantage over the EU and other countries which have secured a more favourable deal in other goods sectors.
“The US is also carrying our further investigations over digital service taxes which could lead to further uncertainty for firms.
“It is crucial that the UK continues negotiations to ensure our companies have the best possible long-term trading terms with the US.
“Expanding our goods and services exports is vital to the UK’s economic growth and the US is our largest single country trading partner.”
He added: “This is unlikely to be the end of the story on US tariffs for either the UK or the rest of the world.
“The Government will need to keep a close eye on developments to keep the UK at the front of the pack.”
Simon Geale, executive vice president at procurement and supply chain consultancy Proxima, said UK companies risk being “caught off-guard” by the new tariffs.
He said: “The measures could lead to increased costs, inflation, and reduced domestic competition.
“Businesses need to move rapidly to prepare themselves, as the winners will likely be those who can adapt to new trading relationships.”
The GMB trade union blasted America’s new tariffs as “ill-judged, potentially catastrophic for business and likely to utterly fail in their stated aim”.
Charlotte Brumpton-Childs, GMB national secretary, said: “Despite claiming they have been introduced to prevent forced labour, in fact they will lead to job losses and reduced earnings for workers across the world.
“The EU now has a better trading relationship with the US than we do – which undermines the so-called ‘special relationship’.
“Once again, the president’s knee-jerk actions will gain nothing, hurt US business and take dollars out of people’s pockets.”
Manufacturing group Make UK said: “The continued application of a 10% tariff underlines the importance of maintaining momentum in UK-US trade discussions under the new Government.
“Manufacturers need certainty, stability and the removal of unnecessary barriers to trade so they can remain competitive in an increasingly challenging global market.”
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