Brits Urge Calm Approach as US Slaps 10% Tariffs
After President Biden’s recent tariff announcement, the British Chambers of Commerce (BCC) is sounding the alarm: the UK must keep a cool head and keep negotiating.
Why this matters to the UK
- The trade relationship with the US is worth £300 billion – a significant chunk of Britain’s economic pie.
- Brits have £500 billion invested in America, and about £700 billion is tied up in the UK economy itself.
- Slipping into a “marathon not a sprint” mindset is key; the BCC calls for patience and long‑term thinking.
What the BCC is warning about
“No-one will escape the fallout,” says Shevaun Haviland, Director General of the BCC. She adds:
- Orders are likely to drop.
- Prices will rise.
- Global economic demand could weaken – a classic lose‑lose situation.
Potential ripples
The tariffs could trigger trade diversion, sending businesses and communities across the world scrambling. The BCC’s message is clear: stopping negotiations now would only make things worse.
Strategic options for businesses
- Open a dialogue with US partners and frame concrete plans to manage the tariff pain.
- Explore alternative markets – think EU, CPTPP countries, or other upcoming trade deals later this year.
- Tap into British Business Bank’s Growth Guarantee scheme for financial relief if cash flow gets tight.
Key takeaways from the BCC
“Retaliatory tariffs should only be a last resort,” the BCC highlights.
Any tax decision must be carefully considered, with all fiscal options on the table.
SMEs are the most vulnerable; the government should hustle to provide practical support.
Bottom line
The BCC’s stance is simple: keep the negotiations alive, approach them as a marathon, and remember that the UK’s economic lifeline is intertwined with the US. A calm, strategic response will save jobs, curb price spikes, and keep the global economy from wobbling too hard.
