Trump tariffs: Why nothing should be taken for granted – transatlantic chiefs

Transatlantic business chiefs believe the UK’s “balanced” trade relationship with the USA could negate much of the impact of Donald Trump’s tariffs – but warned nothing should be taken for granted.

President Trump last week ordered a 25 per cent import tax on all steel and aluminium entering the US, ending previous exemptions for allies including Canada and the EU and marking a major expansion of trade barriers.

The move has sparked fears of a global trade war, with Trump promising to target countries which charge tax on US imports by matching them with a reciprocal tariff.

BritishAmerican Business, the leading transatlantic trade body which is part of the wider British-American Business Network, believe the UK could avoid much of the impact due to its open market and balanced trade with the US.

BAB CEO Duncan Edwards said: “At BAB we regret this decision but acknowledge it is part of the new administration’s economic strategy to strengthen US manufacturing and protect the US steel industry from the effects of cheaper steel leaking through to the global market from China and other places. 

“We expect the UK government to use the time between now and 12 March, when this tariff is due to come into effect, to argue for an exemption for its producers.

“The policy to seek tariff reciprocity with countries that the US trades with should not come as a surprise, as this has been a long-held view of the President and those close to him.  

“The US has long been one of the world’s most open markets for exporters, and many countries with which the US has a trade deficit have higher tariff and non-tariff barriers than the US currently is allowed to impose on them under WTO rules. 

“Many people close to the President believe this is unacceptable. Exactly how the reciprocal tariff will be calculated, and whether it includes charges like VAT and Digital Services Taxes, will be the focus of much attention in Treasuries around the world. 

“Our hope at BritishAmerican Business, is that the UK’s relatively open market and balanced trade with the USA gives it a chance to avoid much of the impact of this policy but nothing should be taken for granted.”