US Tariff changes bring mixed picture for UK exporters
New United States tariff measures, which came into effect on 24 July 2026, are presenting a mixed outlook for UK exporters, combining short-term stability with longer-term competitiveness concerns.
The updated arrangements replace previous tariff measures on UK imports but, for many businesses, the immediate cost position remains largely unchanged. While this continuity offers some reassurance, the broader implications for trade competitiveness are more complex.
Under the new rules, most UK-origin goods entering the United States will continue to face an additional 10 % tariff, applied on top of the standard US customs duty for each product. The measure follows investigations under Section 301 of the Trade Act of 1974 and applies to goods entered for consumption, or withdrawn from bonded warehouses, from 24 July onwards. However, businesses are being urged not to interpret the 10 % figure as the total cost burden. The full landed cost may also include existing US duties, anti-dumping or countervailing measures, sector-specific tariffs, as well as customs clearance, handling and transportation charges. The precise impact will depend on how each product is classified under the US tariff schedule.
Encouragingly, the latest announcement leaves existing arrangements for key sectors unchanged. Automotive, pharmaceutical, steel and aluminium exports continue to benefit from previously agreed frameworks. In particular, UK steel and aluminium products retain a competitive advantage, facing US duties of 25 % compared with 50 % applied to many other countries.
This stability is particularly significant for regions such as the Thames Valley, which is home to strong clusters in advanced manufacturing, automotive production, and one of the UK’ s leading health and life sciences ecosystems.
There have also been targeted positives, including tariff relief for specified UK whisky exports, providing a welcome boost to a globally recognised British industry.
Despite these advantages, concerns remain about the relative competitiveness of UK goods in the US market. Under the revised approach, some European Union exports benefit from a mechanism that caps the combined standard duty and additional tariff at 10 % where existing duties are lower. In contrast, most UK goods face the full standard duty plus the additional 10 % tariff.
This distinction could influence pricing dynamics and purchasing decisions, particularly in sectors where UK and EU suppliers compete directly for US contracts.
Further uncertainty also surrounds ongoing US investigations into digital services taxes, raising the possibility of additional policy changes that could affect international trade conditions. Commenting on the developments, the Chamber welcomed the continuity provided for strategically important sectors but highlighted the ongoing challenges facing exporters.
“ The stability for automotive, pharmaceuticals, steel and aluminium is a positive outcome, particularly given their importance to our regional economy. However, the continued application of an additional 10 % tariff on most UK goods represents a significant commercial hurdle, especially where businesses are competing with suppliers benefiting from more favourable arrangements.”
The Chamber is advising exporters to take a detailed, product-level approach when assessing the impact of the new measures. This includes reviewing tariff classifications, calculating full landed costs, and ensuring clarity around Incoterms and contractual responsibilities. Maintaining open communication with US customers, distributors and customs agents will also be critical.
With the trading environment remaining subject to further policy developments, businesses are encouraged to monitor changes closely and adopt a proactive approach to customs planning and international trade strategy.
INTERNATIONAL TRADE
UK Exporters floundering as headwinds build
New research by the British Chambers of Commerce( BCC) Insights Unit, involving over 2,400 exporters, shows overseas exports have fallen dramatically in the second quarter.
The survey, carried out between Monday 11 May and Monday 9 June, found that just 16 % of exporters reported an increase in export orders, while 26 % reported a fall, and 58 % reported no change.
This was a significant drop on Q1 of 2026, when 25 % reported increased orders, 23 % a drop and 52 % no change.
The size of a firm also played a role with just 11 % of micro-exporters, with fewer than 10 employees, reporting increased export orders in Q2( 18 % in Q1), 24 % reported a fall, and 65 % reported no change.
In contrast, 26 % of large exporters, with more than 250 staff, saw a boost in overseas orders( 38 % in Q1), 17 % reported a decrease, and 57 % said they’ d seen no change.
The picture is substantially different to the performance before Brexit, Covid, the war in Ukraine, US tariffs and other geopolitical disruption. In Q2 2018, 31 % of all firms saw increased export orders and 14 % a decrease.
William Bain, Head of Trade Policy at the BCC, said:
“ Exporters of all sectors and sizes have taken a substantial hit to their overseas orders as the impact of Brexit, tariffs, the Iran war and cost pressures have combined.
“ No business sector is immune. But it’ s a growing concern that services firms, which have been the backbone of our export growth since Brexit, are facing a real fight to boost overseas interest.
“ If the new Prime Minister is serious about delivering growth, then increasing the UK’ s exports must be central to that drive.
“ The current administration has been successful in landing a string of trade deals, but the pipeline is starting to empty. Chamber businesses want to see a new set of free trade agreements which focus on Mercosur, the Philippines, Indonesia and Thailand.
“ The government must also boost export support and shift more trade processes online to simplify the bureaucracy.
“ Making quick and concrete progress on the EU reset should also be a priority. That means securing deals on food and drink exports, agreeing a youth experience programme, reintegrating our electricity markets and linking our schemes on greenhouse gas emissions.”
www. thamesvalleychamber. co. uk 35