Trump to impose new tariffs on British goods
Donald Trump is set to impose a new 10 per cent import tariff on British goods and 59 other countries as existing time-limited levies introduced by the president in response to a Supreme Court defeat expire on Friday, reports BritPanorama.
A US trade representative, Ambassador Jamieson Greer, confirmed the charges at the direction of the US president, citing claims that the 60 countries have not done enough to enforce bans on items produced by forced labour.
Under the new rules, the UK could be eligible for exemptions on products where it would encourage compliance in meeting this commitment.
The fresh tariffs came just hours before temporary 10 per cent levies, which Britain was already subject to after the Supreme Court overturned Trump’s previous import tax regime in February, expired. He is now seeking a more durable system using a 1974 trade law.
The US administration stated that the levies are being applied to these 60 economies “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.”
This decision followed investigations by the Office of the United States Trade Representative (USTR), which involved public hearings, over 2,100 public comments, and engagement with trading partners to address longstanding concerns.
Mr Greer said: “President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains. The United States has had a forced labour import ban for nearly a century and rigorously enforces it. It’s well past time for our trading partners to do the same.”
He added, “Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere. I am encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement.”
However, the USTR indicated that product exemptions would be available where tariffs could cause shortages of raw materials domestically, disrupt the economy, or where items cannot be grown or produced in sufficient quantity or at a reasonable price in the US.
There will also be exemptions for products from the UK and other named countries aimed at encouraging these economies to fulfil commitments regarding forced labour import prohibitions or to enact and effectively enforce such prohibitions.
Tariffs are typically paid by companies in the US importing foreign products, which often results in higher prices for consumers. With Americans already facing rising costs of living, the administration faces a significant risk in implementing new tariffs ahead of the pivotal mid-term elections in November.
The UK exports more to the US than to any other country, with UK exports to the US worth £66 billion in 2024, accounting for 17 per cent of all UK goods exports.
The Economic Prosperity Deal agreed upon between the two countries last year aimed to mitigate the impact of US tariffs on UK industries and to deepen commercial ties.
A Government spokesperson commented: “There is no change to the tariff rate facing UK businesses as a result of this announcement. The UK remains on a 10 per cent tariff rate and the preferential access secured under our agreement with the United States remains in place. We take forced labour very seriously and ensure that in global supply chains UK businesses are not complicit in forced labour and human rights violations. The US has recognised the steps the UK is taking, which is why there are no additional tariffs for the UK under this announcement.”
