This latest twist in Trump’s trade tariff drama has many people asking what it means for the UK’s deal with the US.
The answer is not actually as much as you think.
Initially, tariffs found illegal by US courts do not include vehicles, which make up the majority of what the UK exports to the US, and vehicles that contain steel and aluminum, the other British industries that are most affected.
UK automobile exports are currently attracting 27.5% tariffs, while steel and aluminum are hit by 25% tariffs. This is the same as in all other countries. Wednesday’s ruling has not changed that.
And the UK has contracted with the US to cut car tariffs to 10% and reduce steel and aluminum tariffs to zero, but the transaction has not yet come into effect.
A source for Jaguar Land Rover told the BBC that these tariffs cost them “a huge amount” and could push back the concepts that have been raised by the car trader SMMT, and run current US stocks before they feel the pain of the tariffs.
The government said it is working to carry out the transaction as quickly as possible, and trade chief Jonathan Reynolds said he will urge lawsuits for rapid implementation when he meets US representatives at a meeting of the Economic Co-operation and Development Think Tank Agency in Paris next week.
The ruling blocks the 10% levies of Trump’s blanket tariffs on other UK products in the US, such as products such as salmon and whiskey. Therefore, it remains uncertain how that portion of the customs contract will pan out.
As the White House said it intends to appeal the decision, the UK exporter’s tariff relief sigh could be short-lived.
There are other mechanisms by which the President imposes tariffs – promoting them through various provisions of the Trade Act or through Congress.
The UK has announced its trade agreement with the US in some fanfare, but there are questionable marks as to how better the UK will be than other countries if it turns out to be prevented by the president from imposing tariffs that shaking others either by the court or by his own parliament.
Perhaps the most corrosive effect of all is another wildcard that has already been thrown into the game of unpredictable international trade standoffs.
It makes it difficult for businesses to plan and invest with confidence.
