New US‑UK Tariff Deal: A Boon… or Just a Band‑Aid?
After months of back‑and‑forth on trade talks, the UK and the US finally nailed down a line‑up of tariff changes. The headline promises lower duties on steel, aluminium, and a dip in the 27.5% import tax on UK cars. But is that really enough to keep small‑business exporters—those whose fortunes hinge on every pound—safe from President Trump’s tariff storm?
The Deal at a Glance
- Steel & Aluminium: No more tariffs when these goods land in the US.
- Car Exports: The hefty 27.5% rate is trimmed down to 10% for up to 100,000 cars per year.
- New US Market Access: UK exporters get a shot at selling US products like ethanol and specific beef types.
Parcelhero’s Take
David Jinks, Parcelhero’s Head of Consumer Research, weighed in. While the headline agreements look solid for industry giants, he argues that smaller exporters still feel blindsided.
“Prime Minister Kier Starmer’s speeches may get applause for hitting India and the US, but for most UK SMEs the real story is hidden in the details.”
What the Numbers Say
- Last year, UK goods sent to the US reached £59.3 bn – a 3.7% drop from 2023.
- Only 8.7% of manufacturers reported a decline in demand thanks to US tariffs.
- When it comes to extra costs, 8.1% of manufacturers and 4.6% of retailers felt the pinch.
- By late May, some 1.8% of manufacturers and 1.3% of retailers had already stopped or paused US exports.
- Looking forward, an additional 2.9% of manufacturers and 1.4% of retailers plan to halt or postpone.
- Even among those that keep trading, 9.4% of manufacturers and 7.5% of retailers brace for ongoing reduced demand.
Why the 10% Tariff Still Matters
Despite the concessions, the blanket 10% duty on goods over $800 sits like a stubborn traffic jam for smaller firms that don’t generate the punchy volume of multinationals.
Some SMEs have already had to raise prices to cover the cost, spilling that extra burden onto customers.
Bottom Line
While the deal gives a lift to big‑name automotive, aerospace, and steel players, it falls short of being a “full and comprehensive” solution – as Trump touts it. The practical reality? Many UK exporters, especially the smaller ones, are still feeling the ripple effects of the new 10% tariff.
We’re looking at a future that’s likely to see a roller‑coaster of volatility and evolving US shipment patterns. The next few months will show whether this fledgling pact can actually protect small businesses, or if it’s just a quick fix that leaves a lot unsaved.
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